Burberry Staked Its Future on Riccardo Tisci's Designs. We'll Soon Learn if That Was a Smart Move.
This week, everyone will be talking about Burberry's quarterly results, Amazon Prime Day and ComplexCon. Read our BoF Professional Cheat Sheet.
THE CHEAT SHEET
Burberry's Results Will Finally Reflect Tisci's Impact
Burberry Autumn/Winter 2019 | Source: InDigital.Tv
- Burberry releases first-quarter results on July 16
- Last quarter, the brand’s revenue fell short of expectations as sales in Asia grew at a sluggish pace
- Analysts see sales rising faster as more of Riccardo Tisci’s designs hit stores
In May, Burberry Chief Executive Marco Gobbetti said it was too early to gauge the impact of Riccardo Tisci’s designs on the bottom line, as his first collection had only just begun to trickle into stores. He won’t have that excuse this week, with JP Morgan estimating 35 percent of products for sale last quarter reflect Tisci’s work, up from 15 percent in the previous quarter. Tisci’s designs have received a decent, if not quite rapturous, reception on the runway, while the revamped monogram is meant to elevate the brand. Burberry has also improved its record on sustainability, including a recent pledge to go carbon neutral by 2022 by 2022),since it was revealed a year ago the brand was burning unsold goods. JP Morgan predicts same-store sales will grow 3 percent in the most recent quarter, compared with 1 percent in the previous period. However, Asia may still be a sore point; perceptions of Burberry have declined sharply in China, a recent Bernstein survey found.
The Bottom Line: One area to watch closely in this week's results is leather goods, a perennial weak spot for Burberry that the brand is eager to fix.