Burberry hails digital integration as ‘brand momentum’ driver despite profit slump
Luxury fashion brand Burberry has credited its ‘digital innovation and integration’ for a 14 per cent lift in sales to £1.1bn, despite seeing profits in the six months to the end of September drop to £141.8m from £159m.
Burberry said digital outperformed at the company, with the execution of strategies including a new mobile platform and WeChat launch in April, helping to keep ‘brand momentum’ driving forward. The retailer also said the recent launch of its My Burberry fragrance provided a halo benefit to the brand.
Instore iPads now account for 25 per cent of Burberry’s digital revenue, with click and collect, which is offered in around 140 stores accounting for 20 per cent.
Burberry has outlined a plan to continue to invest in digital and in store and aims to utilise digital as a ‘differentiator’ for Burberry.
Christopher Bailey, Chief Creative and Chief Executive Officer, commented: “Looking ahead, in a more difficult external environment, we continue to focus on the things that we can control. Through authentic products, great customer experiences and a culture of continuous improvement and innovation, we remain confident of Burberry’s sustained outperformance."
For the full year Burberry said it expects some downward pressure on its retail performance reflecting the negative impact of exchange rates.