Burberry

Burberry Financial Analysis

Burberry Group plc

Burberry Group is a holding company based in the U.K. Co. is engaged in designing, sourcing, manufacturing, distributing and selling luxury men's, women's and children's clothing and non-apparel accessories globally through both the retail (including digital commerce) and wholesale channels. Co.'s non-apparel products include handbags, soft accessories, such as scarves, small leather goods, shoes, belts and jewelry.

SWOT Analysis

Strengths

The organization is uniquely placed its market as British apparel brand name with eminent global brand cognizance to becharm the globalization of user demand.

In spite of the macro-environs, the mindset for the approachable lavish goods industry continues convinced from both a product and geographic viewpoint.

Weaknesses

Company results are to changes in demand for luxury goods, which in turn brought to the health of the external environment, the stock market and consumer confidence instructed local. The company is thus exposed to a potential slowdown in discretionary spending on clothing by wealthier consumers. The exposure to mature markets: Great Britain, Japan and Spain.

Burberry is structurally exposed to the clothing market and in comparison to other luxury groups, it has a high exposure to fashion risk. This is probably lower than historically, since the company was the number of collections increased annually two to five.

Opportunities

Altho Burberry is already a big brand, there is continued ambit for retail space expansion and product development as drivers of further growth.

Threats

Company is open to currency risk .especially, a large symmetry of Company sales are relates to tourism and are therefore exposed to changes in international tourist flows.

Company Financials

Income Statement

Standardized Annual Income Statement

Report Date

03/31/2010

03/31/2009

Currency

GBP

GBP

Audit Status

Not Qualified

Not Qualified

Scale

Thousands

Thousands

Total Revenue

1,279,900

1,201,500

Direct Costs

475,900

535,700

Gross Profit

804,000

665,800

Total Indirect Operating Costs

632,900

675,700

Operating Income

171,100

(9,900)

Interest Income

(3,700)

(5,200)

Other Non-Operating Income

(1,400)

(1,000)

Total Non-Operating Income

(5,100)

(6,200)

Earnings Before Tax

166,000

(16,100)

Taxation

83,800

(11,000)

Minority Interests

(800)

(900)

Net Income

81,400

(6,000)

Average Shares Basic

432,600,000

431,300,000

EPS Net Basic

0.19

(0.01)

Average Shares Diluted

441,900,000

438,100,000

EPS Net Diluted

0.18

(0.01)

Shares Outstanding

434,947,567

433,137,430

Overall Company shows a positive increase in revenue which is ...