Burberry enjoys strong sales growth
Luxury fashion brand Burberry saw total revenue rise 22% to Â£574 million in the three months to 31 December.
Retail revenue rose 23% to £417 million with sales of coats and leather bags driving half of growth. Knitwear, mens' accessories and aftershave also performed strongly. Like-for-like revenue, excluding new store openings, increased by 13% in the quarter.
Burberry said sales rose 36% in Asia Pacific, 20% in Europe, 4% in the Americas and 31% in the rest of the world.
Mainline stores again outperformed led by Greater China, the UK, France and Germany, with a good performance in the US. The company said the travelling luxury consumer drove outperformance of its flagship markets in London, Paris, Hong Kong and Las Vegas. Comparable store growth in China continued at around 30%.
Burberry opened six mainline stores and closed four in the quarter. New stores included the first flagship in Paris, a third store in Brazil in São Paulo and the fourth childrenswear store in the Middle East. Average retail selling space increased by 13% in period, with growth of between 13-14% now expected for the second half.
Angela Ahrendts, chief executive officer, commented: "Burberry has delivered another strong performance, with a 21% increase in revenue in this important third quarter. Our investment in flagship markets and digital technology has enabled our global teams to continue to drive customer engagement, enhance retail disciplines and improve operational effectiveness, further strengthening brand momentum.
"Looking ahead, we remain focused on executing our proven core strategies to achieve long-term sustainable growth, while staying mindful of the challenging macro environment."
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