Burberry third quarter sales rise by 14%
Luxury fashion brand Burberry saw its retail sales climb by 14% to £528 million in its third quarter with online sales a key driver of growth.
In the three months to 31 December, comparable sales growth was 12% which was in line with the company’s expectations.
Burberry said traffic offline remained weak in the period but grew online to reflect evolving consumer behaviour. Sales of outerwear and large leather goods contributed around half of growth while sales of men’s accessories and tailoring grew strongly.
The company’s Asia Pacific region delivered double-digit comparable sales growth in the period while the Americas and EMEIA regions both saw mid to high single-digit growth. Burberry said its performance in the UK, France and Germany was “robust” while Italy remained weak.
During the quarter, Burberry opened a net five mainline stores including two in China, a fourth store in Mexico and the first Burberry Beauty Box in Covent Garden, London. In addition, the retailer acquired one store and two concessions previously operated by a franchisee in Thailand.
Burberry chief executive Angela Ahrendts said: "In the all-important festive period, we are pleased with our 12% comparable sales growth, which was in line with our expectations. This performance reflects continuing strong brand momentum and our team's intense focus on retail execution, supported by a planned increase in investment in marketing, customer service offline and online and our retail portfolio.
“At current levels, exchange rates will be a significant headwind in the second half and beyond, and the macro environment remains uncertain, but we are confident that our proven strategies will continue to deliver long-term value for shareholders."
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