Over the past five years, we have elevated our product offer and brand positioning to reflect Burberry’s unique qualities and extraordinary heritage. In the next phase of our strategy, we are focusing on revenue growth and acceleration.
In November 2022, we set out the next phase of our strategy to realise our potential as the modern British luxury brand. In the medium term, we are targeting revenue of £4 billion (at FY 2021/22 CER).
Our longer-term ambition is to develop Burberry into a £5 billion revenue brand. This will drive significant operating leverage, increasing our adjusted operating profit margin well above 20%.
Building on a very strong platform, we have identified opportunities across the business to unlock growth. The key elements of our plan are as follows:
| 2017 - 2022 Brand elevation |
2022+ Modern British luxury |
|
|---|---|---|
| Brand | Elevated the brand | Improve clarity Broden appeal through modern luxury aesthetic Refocus on Britishness |
| Communications | Redefined brand image | Drive consistent brand message across all touchpoints Supercharge customer focus |
| Product | Established the leather goods category | Bring all categories to full potential, shifting our mix more towards accessories |
| Distribution | Reoriented business to full price Cleaned up wholesale Upgraded store network |
Accelerate store refurbishments Seize opportunities in e-commerce |
| Enablers | Operational efficency | Value chain excellence Inspired people Values and sustainability |
Britishness is at the heart of our brand and product. We’re harnessing our unique heritage and leveraging what makes Burberry special to enhance our storytelling and drive growth. We’re also taking the richness of our British history and reinterpreting it with a modern vision that will colour our innovative and disruptive campaigns. These campaigns and activations will be relevant, coherent, and connected to who we are and the products we offer.
We’re known for creating beautiful luxury products that are made to last. Under the creative direction of Daniel Lee, we’re evolving our leather goods by bringing an even greater level of desirability to our offer. Within outerwear, we’re building on our legacy of innovation by developing newer categories, such as quilts and downs, and diversifying our silhouettes. Shoes is a huge growth category for our industry, and we’re building an offer that covers both formal and casualwear and focuses on the outdoors – a natural fit for Burberry. We want our customers to look and feel their best each day, so we’re creating a luxury wardrobe that is both relatable and wearable. We’re also developing a distinctive aesthetic for Burberry womenswear.
We’re strengthening our distribution by rolling out our new store concept at pace, and transforming productivity. We have an elevated wholesale distribution network and are developing a stronger presence in key wholesale doors. We are deepening our relationship with our community through innovation, developing new digitally-powered experiences to excite our customers around the world. We’re also enhancing the user experience across both our website and mobile app so our customers can better connect with our brand and discover the products they love with ease.
Execution is key to delivering our strategy. We’re simplifying our processes and improving efficiency in product development and supply chain, ensuring a better connection between merchandising and design. At the same time, we’re continuing to deliver on our bold sustainability commitments and positively impact our communities. Our people are fundamental to this, and we’re passionate about ensuring they’re supported and inspired to deliver great outcomes for our customers, communities and stakeholders.
