BURBERRY PLC

Burberry Plc

Table of Content

INTRODUCTION1

DISCUSSION1

Background of the Company1

History1

Strategies and Product of Burberry Plc2

Market Competition in the Industry2

Strengths and Weaknesses of the Company3

Corporate Governance3

Financial Analysis4

Profitability Ratios4

Investment Ratios5

Strength of Burberry6

Weakness of Burberry6

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS7

REFERENCES8

APPENDIX10

Ratios10

Financial Statements10

Income Statement10

Cash Flow11

Balance Sheet12

Burberry PLC

Introduction

This paper focuses on the financials of Burberry Plc in order to present a comprehensible and accurate picture of the company for last three years 2010, 2011 and 2012.

Discussion

Background of the Company

History

Burberry - is an exclusive, British fashion house, founded in 1856 by Thomas Burberry. This company involves in selling clothes, perfume and fashion accessories for men and women. In 1880 Thomas Burberry invented the world's first "breathable" waterproof fabric gabardine, named after the hiding place, occurring in the works of Shakespeare, in which it was possible to hide from the weather. The patented was acquired in 1888 of gabardine technology. The company has specialized in manufacture of British Army outerwers. Protective clothing Burberry was equipped expedition Roald Amundsen to the South Pole. After the First World War clothing company became popular among the civilian population. In particular, the clothes were wearing Burberry characters such famous films as “Casablanca "and" Breakfast at Tiffany's "and some characters of the famous series "Agatha Christie's Poirot”.

Strategies and Product of Burberry Plc

The strategies used by company in order to distinguish with other company is Franchise Leveraging, Intensifying non-apparel development, Accelerating retail-led growth, Investing in under-penetrated markets, Pursuing operational excellence. The main objective of the blueberry is the protection of their brand and to explore different opportunity and lastly inspire customers. These factors are the main value for Burberry which expresses their culture and company behaviors.

Market Competition in the Industry

The characteristic pattern Burberry is the most widely copied trademark in the world. The current chairman is Christopher Bailey. It has a network of boutiques around the world. The company is present across the world. Burberry is a prestigious brand, which has recommendations of the Royal Family. The famous Burberry trench coat she wore such as Marlene Dietrich. In the year 2010/2011 face of the company was Emma Watson. According to Reuters in mid-December 2011, 88.34% stake in Burberry Group owned by institutional investors.

The capitalization of the Burberry Plc in middle of June 30, 2012 was 5.78 B pounds.

Their own company only produces coats, other products manufactured by third-party factories. Burberry products are sold through 330 retail outlets and through wholesalers. In addition the company carries on the trade directories. Under the brand Burberry company Inter Perfumes in 1981 and produced perfumes. Revenues for the 2011 fiscal year £1,501.3 million (approximately $2,336.2 million) which increased 26.7% from last years. The main competitors of Burberry are Bulgari S.p.A, Hugo Boss AG and Hermes International SA.

Strengths and Weaknesses of the Company

Corporate Governance

Burberry is confident that its products must be exclusively manufactured in factories meeting the local labor laws and the environment, for workers not subject to any operation, operating in a safe working environment and hygienic, and they could implement the freedom right association and collective ...