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Burberry beats forecasts as market awaits Tisci's designs
BRITISH luxury group Burberry beat market forecasts with a 2 per cent rise in full-year adjusted profit to £467 million (S$845 million), as it embarks on a new chapter under designer Riccardo Tisci, the former Givenchy star appointed in March.
The brand, which chief executive Marco Gobbetti is repositioning in a higher luxury segment, reported group revenue of £2.73 billion, down one per cent.
Comparable same store sales rose 3 per cent, in line with market forecasts.
"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," Mr Gobbetti said.
"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." Mr Tisci replaced Burberry's creative chief Christopher Bailey, who turned the trench coat maker into a global brand. His first collection will be shown in September.
His designs are key to Mr Gobbetti's strategy to reinvigorate Burberry, where sales have lagged luxury rivals.
Mr Gobbetti set out a plan in November to take the label further up-market, but the company said there would be little, if any, growth in revenue and operating profit until its 2021 financial year as the programme was implemented.
Burberry said it had traded in line with its guidance since the start of its financial year on April 1.
Analysts were expecting the company to report adjusted operating profit of £453 million, according to a company-provided consensus of 19 analyst forecasts. REUTERS