Burberry revenues up 9% in Q3
Retail revenue, which makes up the bulk of the company’s sales, rose 13% to £464 million on an underlying basis, as the company benefited from a particularly strong week in the run-up to Christmas. Comparable store sales grew by 6%, with the balance from new space.
Burberry said that the third quarter increase in revenue had been driven by customers’ preference for higher priced styles with sales of outerwear contributing around half of the growth. In addition, men’s tailoring grew by over 50% and men’s accessories were up nearly 40% in the period.
Sales in the in the Asia Pacific region rose 16% to £242 million on an underlying basis, while in Europe and the Americas sales increased by 4%.
During the quarter, Burberry opened seven stores and four concessions which included a rebuilt flagship store in Chicago, a menswear standalone store in London, the first concession in the United States, as well as two further stores in Brazil. For the second half of the financial year, average retail selling space is on plan to increase by around 14%, biased towards flagship markets in Asia Pacific and Europe.
Wholesale revenue declined by 5% on an underlying basis to £120 million. In the second half of its financial year, Burberry now expects underlying wholesale revenue to be down low to mid single-digit percentage year-on-year compared to a previous estimate that it would be broadly unchanged. This reflects lower sales to small specialty accounts in Europe. The United States, Asia Travel Retail and Emerging Markets are expected to continue to grow.
Chief executive Angela Ahrendts said: "Burberry delivered 13% underlying retail growth in the third quarter, benefiting from a particularly strong week in the run up to Christmas. In an otherwise difficult quarter, core outerwear, men’s and digital all outperformed.
"We expect the external global environment to remain challenging, but see continued opportunities to drive productivity in our existing business, while investing for growth in under-penetrated regions, product categories, channels and mediums."
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