Burberry’s first semester doesn’t perform as hoped. Revenues down (-4%) and net profit (-24%). New CEO Gobetti will only take office in July

For the high-end English brand a first half of the year to forget as the main financial result is negative. Revenues amounted to 1.159 billion pounds (down by 4% on an annual basis), while net earnings (146 million pounds) bounced back by 24% and gross profits (102 million) by 34%. Currency fluctuations have been among the causes that contributed penalising Burberry’s performance in the first place, as the company invoices in pounds on Asian and North American markets. However, creative director Christopher Bailey has reassured investors that the company’s annual goals are still achievable. This optimism is at odds with foreseeable future indicators that do not seem to be reassuring. The plan drawn up last May foresees a reduction of 15-20% of the production, in order to penetrate the luxury market with a more compact stylistic offer and, above all, to keep costs down. Analysts, however, argue that there’s the need to wait more than six months to have the bigger picture taking place. Marco Gobbetti, now president of Céline, the Burberry economical driving. His will take his role as a CEO sometime in July 2017.


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