Burberry's financial results for the period ending March 31st showed a 17% increase in sales to £2.33 billion and an 8% increase in pre-tax profit to £461 million, both of which were record highs. Best-selling products were outerwear, luggage, and menswear, and the company attributed the success to strong retail performance in China, where it recently opened a large flagship store in Shanghai in April this year, and the United States, as well as the expansion of its digital division.
In his first financial results announcement, CCO Christopher Bailey, who officially took on the role of CEO on May 1st, emphasized that Japan, which is transitioning from licensed to in-house development, and Beauty, which completed the transition from licensed to a new in-house division last April, are new platforms for future growth. In Japan, the licensing agreement with Sanyo Shokai expires in June 2015, meaning that the contract for Burberry London will end after the 2015 Spring/Summer collection. On the 19th, it was announced that Sanyo Shokai will continue to operate the Burberry Blue Label and Burberry Black Label brands, dropping the "Burberry" name from the brand name, from the 2015 Fall/Winter collection. This announcement has been met with much attention. According to Burberry's announcement, while the current licensing agreement will expire, a new three-year licensing agreement has been signed with Sanyo Shokai. While this agreement allows Sanyo Shokai to use the names "Blue Label" and "Black Label," Burberry stated in a release announcing its financial results that "These two brands will have no association with the Burberry brand." Burberry plans to increase its street-level stores and department store boutiques, primarily in Tokyo and Osaka, and has announced a goal of increasing global collection sales from the current 25 million pounds to 100 million pounds by fiscal 2017.
In the beauty sector, the company aims to further expand its perfume division, centered on the "Britt" series, and to strengthen sales through its beauty specialty store "Beauty Box" and online shop.
