Burberry’s new chief plans return to ‘Britishness’ as sales rise
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BURBERRY Group’s new leadership plans a return to “Britishness” after a revamp by an Italian executive duo failed to keep the UK brand abreast of its luxury rivals.
The new team of chief executive officer Jonathan Akeroyd and creative chief Daniel Lee want to increase accessories to more than half of sales in the long term, banking on high-margin products in their overhaul of the trench-coat maker.
Comparable-store sales rose by double digits in the three months ended in September, as American tourists took advantage of the strong dollar to snap up luxury goods in Europe. Still, growth fell short of the high bar set by rivals such as LVMH and Hermes International.
Akeroyd, who took charge in March, will provide more details of his strategy later Thursday (Nov 17). In a first step toward shaking up the brand, the Versace veteran in September named Lee to succeed Riccardo Tisci as creative director.
Burberry’s is now aiming to double sales of its leather goods, shoes and women’s wear in the medium term. It’s also targeting annual revenue of £4 billion (S$6.54 billion) over the same time frame, with high single-digit growth and “good margin progression”.
Akeroyd succeeded previous CEO Marco Gobbetti, who was mid-way through an effort to take the Burberry brand further upmarket when he left to head Italian competitor Salvatore Ferragamo.
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Yorkshire-born Lee was previously head designer at Bottega Veneta, where he helped reinvigorate the Kering brand before leaving for undisclosed reasons a year ago.
During his four-year tenure, Tisci tried to make the Burberry brand more visible by placing a monogram logo on products including handbags, a recipe that’s worked for other brands such as Louis Vuitton.
Lee is due to present his first collection for Burberry during London Fashion Week in February. BLOOMBERG
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