Burberry has released their fiscal year 2017/2018 results.
In a press release regarding their fiscal year 2017/2018 results, Burberry revealed 40% of direct-to-consumer sales were made via mobile device.
The brand also noted direct-to-consumer continued to deliver good growth in the year ending 31 March 2018 with particular strength in Asia.
Burberry’s press release said:
In November 2017, we set out our multi-year plan to re-energise our product, our communication and the experiences customers have of our brand. The plan is underpinned by our operational excellence and people strategies.
We have made good initial progress and are on track to achieve our goal of positioning Burberry in the most rewarding and enduring part of the luxury industry, where we can deliver sustainable long‐term value.
Throughout the year, we have focused on building the team to develop and deliver our strategy. This has included promoting internal talent and bringing in fresh expertise from outside Burberry, including most recently Gavin Haig as Chief Commercial Officer.
We also welcomed Riccardo Tisci as Chief Creative Officer on 12 March 2018. Riccardo’s creative vision will reinforce our ambitions in reshaping our product offer and sharpening our brand positioning. His first collection will be shown in September 2018.
While we are in the early stages of the implementation of our strategy, during the second half of the year we saw:
- Progress in the evolution of our product with tighter, more productive collections attracting new customers as well as current top-tier clients
- The start of the transformation of our leather goods with new handbag launches from Spring 2018 and a roadmap of launches to come
- Progress on our retail excellence programme and the roll out of our new digital clienteling tool, supporting increased conversion
- Our refreshed digital platforms, with more curated and editorialised content, generating increased engagement
- Our wholesale partners responding positively to our strategy and we started the evolution of our distribution, making some strategic retail store closures.
Consistent with our plans to transform our leather goods offer, we announced on 14 May, that we have signed an agreement to acquire a luxury leather goods business from a longstanding Italian partner, CF&P. This will create a centre of excellence for our leather goods, covering all activities from prototyping, product innovation and engineering to the coordination of production. It will give us greater control over quality, cost, delivery and sustainability in this strategically important category.
In FY 2018 we have demonstrated our commitment to exercising financial discipline. Costs have been tightly controlled and we have delivered incremental savings ahead of plan of £44m, bringing the total cumulative savings to £64m. Applying our capital allocation framework, we returned £524m of cash to shareholders through a combination of dividends and buybacks.
Marco Gobbetti, Chief Executive Officer commented:
“In a year of transition, we are pleased with our performance as we began to execute our strategy. While the task of transforming Burberry is still before us, the first steps we implemented to re-energise our brand are showing promising early signs. With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value”
In 2019, Burberry says the company is on track to deliver cumulative cost savings of £100m, as well as a new share buyback of £150m.