Outcomes and “new energy” for Burberry, whose financial statements go beyond expectations, after completing CF&P (Scandicci) leather goods buyout

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Burberry’s financial statements, closed on March 31, went beyond expectations a great deal: adjusted profits increased by 5%, going up to 467 million pounds, therefore going better than expected (453 million pounds). In the same period, operating profits increased by 4%, going up to 410 million pounds, and net profits went up to 294 million pounds, therefore increasing by 2,4%. Throughout the financial year, revenues reached 2,73 billion pounds, decreasing by 1% compared to 2017. Along with data, Burberry’s top management confirmed a new plan to rebuy some of their own stocks, worth 150 million pounds (171 million euros), following the one started last year (to rebuy 300 million pounds in stocks). “Burberry’s renovation project still needs further development to come to completion – pointed out CEO Marco Gobbetti while talking to Reuters -, yet we are enjoying the fruits of our labour, which aims to give the brand new energy”. In the meantime, Burberry have taken control over CF&P leather goods, based in Scandicci, recently bought out. By carrying out such acquisition, the British brand decisively step into the leather goods business; furthermore, they follow other luxury brands in their business strategies and directly participate in the supply chain management. They have not made public the economic terms of the transaction deal, which is going to be closed by the end of the year. CF&P’s employees, including a team of artisans who have been working for Burberry for over a decade, will join the British company. “Through the buyout of CF&P we are about to create a top quality centre for Burberry’s leather goods. We will be in charge of the whole manufacturing process, across its stages: prototyping, product innovation, engineering and production supervision”- said CEO Marco Gobbetti while talking to WWD. “In so doing, we will enhance our control over leather goods quality, costs, deliveries and sustainability” – he added. CF&P, founded in 2012, extends across an area of 4,500 square metres. Their staff is entirely composed of women (about 170 employees): Carmen Paroni is in charge of them. Finally yet importantly, they are an international player in the luxury leather goods industry. The buyout is meant to enhance Burberry’s role in the luxury leather goods industry, following the appointment, which dates back to March 2017, of Sabrina Bonesi (formerly employed at Prada and Dior, she is an expert in leather goods) as creative director of the brand with regard to bags, shoes and accessories for men and women.

 

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