General presentation of Burberry
Now let's take a look at the Burberry Group and its various businesses and revenue streams. This will give you a better understanding of how the group makes profits and what its future challenges are.
The Burberry Group Plc is a British company that operates in the luxury sector. More specifically, the group specializes in the design, production and sale of high-end fashion clothing and accessories.
To better understand the activities of this company, it is possible to divide them into several divisions according to the share of turnover they generate and in this way:
- Firstly, the majority of the Group's revenue, 81.4%, is derived from the retail distribution of the Group's products. This business is currently conducted through a network of 459 outlets or stores which are split between directly owned stores with 214 Burberry brands, 145 concession stores, 44 franchise stores and 56 other types of stores.
- The second largest business and group in terms of revenue is wholesale distribution, which generates 16.9% of sales.
- Finally, the remaining 1.7% of the group's turnover comes from sales under licence.
Apart from sales under licence, the breakdown of the group's turnover by product family is primarily accessories (36.5%), menswear (28.9%), womenswear (28.3%) and children's wear (6.3%).
It is also important to know the geographical distribution of Burberry's revenues, which currently generates 27.2% of its sales in Europe, the Middle East and Africa, 52.2% in Asia Pacific and 20.6% in the Americas.