Burberry CEO walks away with strong 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)