Business

Burberry Revenue Dips 1.2% in Fiscal 2017-18, as Company Transitions

LONDON – Burberry held steady in a transitional year that saw the arrival of a new team at the top, a fresh strategy, and the departure of company veteran Christopher Bailey, who has been replaced by Riccardo Tisci as chief creative officer.
Revenue in the 12 months to March 31 dipped 1.2 percent to 2.73 billion pounds. Excluding beauty wholesale revenue, sales were up 2 percent to 2.66 billion, with growth led by retail gains at existing stores.
Operating profit was up 4 percent to 410 million pounds, while adjusted operating profit rose 2 percent to 467 million pounds. Burberry said the latter benefited from positive retail performance, 44 million pounds in incremental cost savings and improved beauty profitability due to reduced marketing and inventory charges.
Burberry inked a license last year with Coty, Inc. to accelerate the growth and development of its beauty business, which had formerly been in-house. The exclusive agreement took effect last October.
Burberry’s chief executive officer Marco Gobbetti said the company was pleased with its performance since it began to execute the new strategy he announced last November.
“While the task of transforming Burberry is still before us, the first steps we implemented to re-energize our brand are showing promising early

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