Burberry Announces a 7% Fall in Profits

Burberry has reported a profit dip of 7.3% to $375.7 million USD between April 2016 and April 2017. The reduced profits reveal a fall in sales of more than 10%, lower than expected income from the brand’s beauty division and a dramatic reduction in the number of wholesale retailers. According to Christopher Bailey, the British brand’s Chief Creative and Chief Executive Officer, the fall in profits was due to the transition currently taking place at Burberry. “The actions we have taken to lay the foundations for future growth are yielding early benefits, and I remain confident that these will build over time,” Bailey stated. Burberry is about to change its CEO, with current Executive Chairman Marco Gobbetti taking the top job in July, Bailey said that “with his extensive experience in the sector, we will build on these foundations to elevate and strengthen the brand further.”