// Burberry to shut 1 in 10 stores worldwide as part of overhaul to portray the brand as more luxury
// Exact locations remain uncertain although five stores have already shut in Brazil & Spain
// The brand is now focusing on turning its flagship stores into luxury destinations
Burberry has confirmed plans close one in 10 stores worldwide in a bid to push the brand to a more upmarket tier.
The British luxury retailer has not yet named any of the store locations due for closure, but said that out of the 38 stores earmarked for closure, five have already shut in Brazil and Spain.
Burberry will also focus on turning its flagship stores into luxury destinations.
The news comes after it reported earlier this week that its revenues and retail sales remained flat at £2.7 billion and £2.19 billion respectively for the 52 weeks to March 30.
Burberry also said it would launch a share buyback of £150 million in 2020.
However, following the trading update, investors were concerned about the slow growth in Burberry’s Chinese market as shares were down five per cent at £18.26.
Burberry chief executive Marco Gobbetti said he was overseeing a plan to place Burberry in the same category as luxury brands such as Gucci and Dior.
Burberry added that the launch of fashion designer Riccardo Tisci’s first collections at the end of February saw strong double-digit percentage growth year on year.
“Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging,” Gobbetti said.
“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations.”
Furthermore, earlier this month Burberry abandoned its plans to open a new factory in Leeds.