Burberry Cleans Up Its Wardrobe to Make Way for a New Chief
- Awaiting CEO Gobbetti, trenchcoat maker streamlines brands
- Profit decline stems from moves to elevate image: CFO Brown
A pedestrian passes a giant poster for Burberry, posted on the outside of their store on New Bond Street in London, U.K. on Wednesday, Feb. 29, 2012. Bank of England Deputy Governor Charles Bean yesterday cautioned lawmakers against putting too much weight on positive signs in the economy.
Photographer: Simon Dawson/BloombergBurberry Group Plc says a sleeker cut will help Chief Executive Officer Marco Gobbetti lift the brand’s image when he takes over in July.
The U.K. trenchcoat maker said Thursday that it has sacrificed some sales in the short term in order to strengthen its luxury credentials in a bid to raise profitability down the road. Planned cost cuts are on track after it streamlined its product offer and took other steps to rein in a business whose underlying profit has declined for three straight years.