Burberry £20m boost from China buy-in

16th Jul 2010 07:30

Luxury brands group Burberry has taken its franchised stores in China under its own control as part of a move to unify its brand globally.Burberry will pay £70m in cash, subject to completion adjustments, for the 50 stores. The transaction is expected to add up to £20m to group operating profit in financial year 2011/12. "The acquisition of Burberry's store operations in mainland China will allow us to further leverage our proven brand and business strategies in this high growth luxury region. With a solid foundation of 50 stores across 30 cities, operational expertise and strong brand momentum, this is an optimal time for Burberry to integrate this business," chief executive Angela Ahrendts said."We plan to drive productivity in existing stores and open new stores, while rapidly implementing our digital marketing initiatives to further reinforce the brand in this exciting market," she added.