‘Outstanding’ second half for Burberry

Manufacturing News, Source : TheManufacturer.com
Published : 17 Apr 2007 9:22

Clothing group Burberry has pushed revenues up 20 per cent it said in a second half trading update today.

The chav fashion icon, which courted controversy leading to emotional protest marches when it closed its Welsh manufacturing facility in Treorchy last month, reported total revenue up 20 per cent on an underlying basis (19 per cent reported). Retail sales increased 24 per cent underlying, “driven by new and existing stores”.

CEO Angela Ahrendts said the 20 per cent underlying revenue growth in the second half had been “outstanding”. She went on: “The significant investment initiated during this financial year to enhance the luxury component of the brand, advance retail expansion and evolve our operating model is driving accelerated growth across all three channels: retail, wholesale and licensing. This performance is consistent with our expectations for the full financial year."

The closure of the Rhondda valley manufacturing facility would result in a cash cost of £4.8 million to cover redundancy and other related costs and asset write-offs of £1.7million. Shifting manufacturing of its polo shirts to facilities in Spain, Poland, Portugal and China is expected to produce savings of £1.5 million a year.

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