The resigning Burberry CEO, Angela Ahrendts, has left the company in good shape and can leave for Apple with a clear conscience: the British fashion group managed a 14 % turnover growth in the past quarter.
14 % turnover growth
Burberry’s third quarter turnover (of its broken fiscal year 2013-2014, from October to end of December) ended with 635 million euro in sales: a 12 % increase on a like-for-like basis, compared to the same quarter in the previous fiscal year. Including the five new stores, among which the very first Burberry Beauty Box in Covent Garden in London, the growth even reaches 14 %.
With these numbers, Burberry exceeds analysts’ expectations of a 623 million euro turnover. The growth was mainly achieved through online sales, with the investments in service and collect-in-store paying off and even easily compensating for the drop in visitors in the actual stores.
Nice farewell gift for the CEO
Explaining the results, the resigning CEO said she was satisfied with how turnover was growing, even though she did point out several risks in the upcoming months. “At current levels, exchange rates will be a significant headwind in the second half and beyond, and the macro environment remains uncertain.”
The excellent quarterly results are a great way for Angela Ahrendts to end her reign as Burberry CEO and as Great Britain’s best-paid CEO. The 53-year old will soon join Apple, where she will oversee all retail activities, both online and offline. Her Burberry successor will be creative director Christopher Bailey.
(Translated by Gary Peeters)