Burberry Group PLC (BRBY) - Fragrance and beauty to be directly operated
RNS Number : 4381O
Burberry Group PLC
11 October 2012
Burberry Group plc
Fragrance and beauty to be directly operated
In order to capitalise on the significant opportunities available for the
brand in fragrance and beauty, Burberry announces that it will directly
operate these product categories following the end of its existing licence
relationship with Interparfums SA.
Fragrance and beauty will be run as Burberry's fifth product division
alongside accessories and womens, mens and childrens apparel. Burberry
already leads all product design, packaging and marketing activities for
fragrance and beauty. It will now take control of the relationship with
sourcing, logistics and distribution partners worldwide, supported by
Burberry's existing IT, planning and central infrastructure and supplemented
by a number of key senior hires with extensive functional expertise in these
categories. To facilitate the transition, the licence relationship with
Interparfums has been extended until 31 March 2013. Burberry will commence
direct operations from 1 April 2013.
Angela Ahrendts, Chief Executive Officer, commented:
"Directly operating fragrance and beauty is in line with our strategy of
taking greater control over our brand. There are significant opportunities to
accelerate the growth of this business over time, leveraging our
infrastructure and that of existing key suppliers and distributors.
We are very excited about fragrance and beauty becoming an important fifth
product division for Burberry, as we more closely align it with our core
business and brand positioning."
Further details, including financial information, will be provided with
Burberry's interim results on 7 November 2012. As previously announced,
Burberry will pay Euro181m in cash (exclusive of any receivables, inventories
and other tangible assets) to Interparfums on 31 December 2012 for the ending
of the licence relationship.
Burberry 020 3367 3524
Stacey Cartwright EVP, Chief Financial Officer
Jenna Littler VP, PR and Corporate Relations
Fay Dodds Director of Investor Relations
Brunswick 020 7404 5959
Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and are subject to a number
of risks and uncertainties that could cause actual results to differ
materially from any expected future results in forward-looking statements.
Burberry Group plc undertakes no obligation to update these forward-looking
statements and will not publicly release any revisions it may make to these
forward-looking statements that may result from events or circumstances
arising after the date of this document. All persons, wherever located,
should consult any additional disclosures that Burberry Group plc may make in
any regulatory announcements or documents which it publishes. All persons,
wherever located, should take note of these disclosures. This announcement
does not constitute an invitation to underwrite, subscribe for or otherwise
acquire or dispose of any Burberry Group plc shares, in the UK, or in the US,
or under the US Securities Act 1933 or in any other jurisdiction.
Notes to editors
· Burberry is a global luxury brand with a distinctive British heritage,
core outerwear and large leather goods base and some of the most recognised
icons in the world.
· Burberry designs and sources apparel and accessories, selling through a
diversified network of retail (including digital), wholesale and licensing
· Burberry has five strategic themes to underpin its growth: leverage the
franchise; intensify non-apparel; accelerate retail-led growth; invest in
under-penetrated markets; and pursue operational excellence.
· At 30 September 2012, Burberry globally had 198 retail stores, 215
concessions, 49 outlets and 62 franchise stores.
· Burberry, which is headquartered in London, was founded in 1856. It is
listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE
· BURBERRY, the Equestrian Knight Device and the Burberry Check are
trademarks belonging to Burberry which are registered and enforced worldwide.
This information is provided by RNS
The company news service from the London Stock Exchange
MSCBKKDPFBDDCKD -0- Oct/11/2012 06:00 GMT
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