Burberry Group plc
LSE-BRBY
Company Overview
Burberry Group plc, together with its subsidiaries, manufactures, retails, and wholesales luxury goods under the Burberry brand. The company operates in two segments, Retail/Wholesale and Licensing. It provides womenswear, menswear, childrenswear, beauty, eyewear, shoes, and accessories, as well as leather goods, such as bags. The company also licenses third parties to manufacture and distribute products using the Burberry trademarks. Burberry Group plc sells its products through Burberry mainline stores, concessions, outlets, digital commerce, Burberry franchisees, department stores, and multi-brand specialty accounts, as well as through Burberry.com website. As of April 2, 2022, the company operated 218 stores, 143 concession stores, 57 outlets, and 38 franchise stores. It operates in the Asia Pacific, Europe, the Middle East, India, Africa, and the Americas. Burberry Group plc was founded in 1856 and is headquartered in London, the United Kingdom.
Name
Burberry Group plc
CEO
Joshua Gallay Schulman
Website
www.burberryplc.com
Sector
Textiles, Apparel and Luxury Goods
Year Founded
1856
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Bulls Say
Burberry benefits from solid brand awareness, strong control over distribution, and is the leader in the trench coat category.
Renewed focus on products where the Burberry brand is the strongest could boost brand popularity and revenue.
Cash flow margins should improve through operating expenditure leverage and capital expenditure reduction, as the brand returns to growth off the same store base.
Bears Say
Trench coats, where Burberry's brand is really strong, generate small share of revenue, while other areas are slower growing (apparel) or very competitive (leather).
Increasing in brand premiumization and resulting average selling price growth may be harder to replicate going forward, as pricing is already aligned with better-established luxury brands.
A push into categories where the Burberry brand is not as strong as in core outerwear and scarves may be dilutive to returns and the brand perception.