(2) Underlying figures exclude the financial effect of the Taiwan acquisition and the portion of Burberry's business in Spain affected by the retail conversion, in both reporting periods. In addition, underlying figures are calculated at the same exchange rates used in the 2005/06 year's reported results for the period. Burberry completed the acquisition of the operations and assets of its distributors in Taiwan in August 2005 (the “Taiwan acquisition”) and initiated actions related to the retail conversion in Spain during the third quarter of 2005/06.
Strategic and Operating Highlights: • Enhanced consistency of brand presentation - Centralised design and creative direction in London - Synchronised marketing programme
• Progressed primary product strategies - Outstanding outerwear performance driven by product innovation - Strong consumer response to luxury handbag initiatives - Launched new eyewear collection
• Advanced retail programme - Opened 12 stores, one replacement store, a net 13 concessions and three outlets - Accelerated pace of expansion to 13% average underlying selling space growth (from 8% in 2005/06) - Retail now largest distribution channel with 48% share of revenue
• Revitalised wholesale channel - strong growth across North America, Europe, Asia and emerging markets
• Achieved near-term operational objectives - Project Atlas successfully completed initial SAP implementations, and on schedule for major deployments in 2007/08 - Initiated development of integrated global supply chain
• Celebrated Burberry's 150th anniversary
Commenting on the results Angela Ahrendts, Chief Executive, stated, “With a 21% increase in adjusted EPS on a 15% underlying revenue gain, our 150th anniversary was an outstanding year for Burberry. On the strategic front, we advanced the luxury component of the brand, accelerated retail expansion and continued to evolve the operating model. We face the current year with confidence, given the strength of our brand, effectiveness of our strategies and talent of our teams around the world.”
marketing@alchempro.com
