British fashion brand Burberry has announced a three-year strategy to drive revenue growth, improve productivity, and deliver cost savings as it continues to deal with a challenging environment for luxury goods.
The company announced Fiscal Year 2016 revenue of £2.5bn and adjusted PBT of £421m; a decrease over the prior year. Its profit before tax in fiscal 2015-16 fell 6.5 percent to 416 million pounds.
For Fiscal Year 2016, Burberry will move to one label and change the way it does runway shows, release new products, including its Mr. Burberry fragrance, and open new flagship stores in New York, Seoul and Tokyo, among other initiatives.
“While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to drive Burberry’s future outperformance, underpinned by strong brand and business fundamentals,” said Christopher Bailey, the company’s chief creative officer and CEO.
“We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and create a more efficient organisation,” Bailey continued. “In addition, the capital allocation framework announced today prioritises the investment needs of the business and regular dividend payments to our shareholders, while balancing capital efficiency and flexibility.”