Halifax lad who has proved Burberry doubters wrong

Strong second half trading resulted in a nine per cent jump in underlying sales at a time when both luxury brands and retailers are struggling to maintain zero growth.

Despite tough markets, Burberry has maintained its classy image with new campaigns featuring the likes of Romeo Beckham, Kate Moss and Cara Delevingne – a far cry from its ‘chav’ days when former EastEnders’ star Daniella Westbrook was photographed with her pooch covered in head to toe Burberry.

Both Kate Middleton and Keira Knightley have been pictured wearing Burberry, cementing its royal status.

Mr Bailey appears to eschew the financial world, leaving the number crunching to his very capable CFO Carol Fairweather, but his business nous has proved itself.

Paul Thomas of retail consultants, Retail Remedy, said: “Christopher Bailey and Burberry have proved the doubters wrong.

“Combining the roles of CCO and CEO raised a lot of eyebrows, but Bailey has carried on where Ahrendts left off. The numbers reported on Wednesday are clear evidence of this.”

He added that the return to the Burberry staples of trench coats and scarves has served the brand well.

“It is a back-to-basics approach, which, of course, is anything but basic,” he said. “Where Burberry excels is in its understanding of how technology, and digital, are part of the customer experience.

“There is still volatility in certain markets but there is nothing to suggest Burberry won’t continue delivering strong levels of growth.”

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, believes there are “a couple of blots on the landscape” in the shape of lack of demand in Hong Kong and a low dividend yield, but said that even so, the overall picture is extremely healthy thanks to product growth in iconic trench coats and scarves and “pleasing performances” from the Americas and most of Europe.

Another string to the group’s bow is the launch of high end beauty products with the group reporting strong sales of its new signature fragrance My Burberry.

Pictures of veteran model Kate Moss with newcomer Cara Delevingne wearing nothing but a Burberry trench coat have shot the fragrance to fame.

The group declined to be drawn on takeover rumours (there appears to be a new one every week) with the latest focusing on American rivals or a private equity house.

However, the group’s high share price is likely to deter a takeover.

“It seems that everything about Burberry is premium – its brand, its products and perhaps of late its share price – a 25 per cent increase over the last year, prompting the market to think that the shares may be up with events for the moment,” said Mr Hunter.

Safe from predators, it appears that the good times are set to continue under Mr Bailey.

Burberry has been named Britain’s second most powerful brand after household goods firm Unilever, leaping from sixth place last year to second and overtaking HSBC, Johnnie Walker, BBC and Sky, according to this year’s Brand Finance Global 500 report.

Many industry watchers are now saying Burberry’s cachet beats Chanel, Dior and Saint Laurent put together.

Mr Bailey is proud of his Yorkshire roots and the company has strong links to the region, employing more than 700 people in Castleford where it manufactures the iconic trench coat and at the Burberry Mill in Keighley, where it weaves gabardine fabric and heritage check linings.

Burberry is now the world’s seventh most powerful brand behind Lego, PWC, Red Bull, McKinsey, Unilever and L’Oreal Cosmetics.

It’s an impressive feat for a lad from Halifax.