Chinese boom boosts Burberry sales
During the last three months in 2010, like-for-like sales across luxury brand Burberry stores around the world increased by 14%. Sales particularly improved in China, rising by more than 30%. These statistics indicate that wealthy buyers are once again indulging in the luxury goods market. The group said sales grew in the quarter after it took full ownership of 50 stores in China from a franchisee agreement.
Burberry claims that large leather goods, and outwear, contributed approximately half of its sales growth. The total sales for the company last year between October and December (including newly-opened stores) went up by 30%. Items that particularly sold well included shoes, small leather goods, men's accessories and Burberry’s Prorsum range.
Kate Calvert, retail analyst at Seymour Pierce, has claimed that Burberry was expected to grow twice as fast as its contemporaries. She believes:
"Burberry not only has significant geographical, product mix and leverage opportunities but operates in a market with long-term growth credentials geared in to global growth,".
Stacey Cartwright, Burberry CFO, believes that Burberry is not only benefiting from wealthier Chinese customers but Burberry is “seeing growth in the global luxury consumer generally. Obviously the Chinese consumer is there, but so is the Middle Eastern and Russian customer, and we're still seeing European customers in our London stores. But that’s the beauty of a truly global brand.”
