UK fashion house Burberry says that its new cosmetics business should boost earnings from 2014; making up for the costly bid to secure the division.
Burberry’s reported first-half profit exceeded estimates, although securing the cosmetics division implies a cut of nearly 29 per cent in first-half pre-tax profit, although the company has stressed its confidence on this decision to soon pay off.
“Integrating fragrance and beauty is a significant brand and business opportunity. Our global teams are excited to partner with long-standing distributors, suppliers and customers to optimise these under-penetrated categories,” explains company CEO Angela Ahrendts.
“One consistent brand expression, leveraged across all categories, will underpin future growth in the Beauty division and our existing core business”.