Burberry Prorsum Milan show of the week
Christopher Bailey showed another impressive collection during the menswear shows at Milan Fashion Show. The look was typically Burberry: elegant, sophisticated, charming and innovative.
GUS ANNOUNCES DETAILS OF ITS PLANNED DEMERGER OF BURBERRY
Further to the announcement this morning by GUS plc (“GUS”), setting out details of its plans to demerge its remaining 65 per cent. stake in Burberry Group plc (“Burberry” or the “Group”) by way of a dividend in specie, Burberry will post shortly a circular to shareholders setting out further details of the arrangements with respect to the proposed demerger.
Burberry will propose a series of resolutions to its shareholders, which the independent directors* of Burberry believe would, if passed, allow the demerger to be implemented in a more orderly way, to the benefit of the Group and its shareholders. Matters to be considered include approval of a demerger agreement between Burberry and GUS relating to such issues as pension liabilities, taxation and transaction expenses. Accordingly, the demerger is subject to shareholder approval from both Burberry shareholders and GUS shareholders.
Burberry will convene an extraordinary general meeting of shareholders on 12 December 2005 to consider the resolutions.
17 NOVEMBER 2005
Burberry Group plc announces that Brian Blake, Group President and Chief Operating Officer, has resigned as a director of the Company for family reasons.
Since joining Burberry in June 2004, Mr Blake’s primary focus has been global oversight of the Company’s wholesale, retail and licensing businesses. Mr Blake will make himself available to the Group through to the end of December 31 2005 in order to help ensure an orderly transition.
John Peace, Chairman, said, “Brian has been a valued member of the Board. Brian’s contribution to our global operations has been significant. He will leave the business having further strengthened the management team on the ground in Asia and other emerging markets.” Mr Peace continued, “On behalf of everyone at Burberry I would like to thank him warmly and wish him every success in the future.”
Burberry, the international luxury brand, which is headquartered in London and listed on the London Stock Exchange was founded in 1856.
15 NOVEMBER 2005
Burberry in profit
Luxury goods group Burberry last week reported sales rose 3pc in the first half of the year boosted by demand for its handbags and catwalk collection Prorsum.
Rose Marie Bravo, Burberry chief executive, said: “With cold weather arriving and the holidays approaching, we enter our most important time of year with cautious optimism."
The company also said Brian Blake, chief operating officer and a member of the board, had resigned "for family reasons". Stacey Cartwright, chief financial officer, said: "He'll be available to us until the end of the year but has resigned with immediate effect."
She said Mr Blake would not be replaced immediately, adding: "We'll take our time and just review what the right structure might be."
Ms Bravo is stepping down as chief executive in July next year, to be replaced by Angela Ahrendts, and will become vice chairman of the group.
Underlying sales rose 3pc to £355m, Burberry said, though wholesale revenues declined by 1pc. The company, which is 65pc owned by retail group GUS, said its expansion was on track with new store openings and the acquisition of Taiwan distributors in the first half.
GUS is expected to unveil details of the proposed demerger of Burberry when it reports first half results on Thursday.
Burberry said pre-tax profits slipped to £78.1m in the first half from £79.4m the year before, from the cost of its Project Atlas restructuring programme. Underlying operating profits rose 2pc to £78.8m, Burberry said.
Ms Cartwright said: "Prorsum saw outstanding gains particularly in accessories. Womenswear was impacted by a soft spring season while menswear grew strongly."
She added: “We are very excited about our new Prorsum range of handbags which have gone down extremely well."
Despite the dip in profits, the interim dividend is being lifted 25pc to 2.5p, payable on February 2. The shares fell 1½ to 394p in early trading.
23 November 2005