Burberry growth on track
Demerged fashion brand trading well
October 14 2002
Burberry Group has reported encouraging growth in the luxury clothing brand’s first trading statement since its demerger from GUS.
Total group revenues increased by 15 per cent in the six months to the end of September, with underlying retail sales up 17 per cent when the impact of currency fluctuations is factored out.
Retail sales were driven by sales growth at existing stores as well as the extra sales from newly opened outlets, increasing by 32 per cent in total. Sales in the US were strong, and the company opened stores in Barcelona, Heathrow Airport, Hong Kong and Coral Gables, Florida.
Over the next six months, Burberry plans to open eight new and replacement stores, including flagship stores in New York and London, with its first Italian store, in Milan, due to open in late 2003.
Wholesale sales increased 8 per cent in the first half, while licensing revenue was up 14 per cent, driven by strong volume growth in Japan.
Chie executive Rose Marie Bravo said: “Burberry’s performance in the first half was on track, driven by growth in key product categories, targeted geographies and distribution channels. These results were particularly notable given the trading conditions. Moving into the second half, we remain confident in our strategies while mindful of the difficult and uncertain environment.”
