Burberry reports 32% rise in sales
UK luxury fashion house Burberry has unveiled plans to expand its store space by more than 10% after a successful finish to its financial year.
The firm reported a 32% increase in revenues to £390 million in the three months to March, which it said would result in full-year profits being at the top end of expectations.
The firm said it would increase store space by 12% to 13% in average retail selling space in the financial year to March 2012, mainly in China, South America and the Middle East.
The retailer warned licensing revenues in Japan, where a licensed dealer sells Burberry goods to around 800 outlets, would be broadly flat throughout the year.
Angela Ahrendts, Burberry chief executive, said: “Burberry had a strong finish to the year, driven by our design, digital marketing and retail initiatives, as well as good early progress in China.
“While the luxury industry faces global challenges in the year ahead, we remain confident in our team’s ability to outperform, underpinned by the consistent execution of our key strategies.”
The group said retail revenues were up 42% to £596 million in the six months to March, while wholesale revenues gained 14% to £214 million in the same period.
The fashion house said retail growth was driven by its new stores in China, but that all regions experienced double-digit growth. It said its Burberry Prorsum and Burberry London brands outperformed. The company opened seven stores in the final six months of the year, in New York, Milan, Beijing and Shenzhen in China, Delhi, Sao Paulo and Puebla in Mexico.
Wholesale revenues were similarly driven by a surge in sales in China, but the Americas and Asia Pacific also outperformed, Burberry said.
The firm’s licensing division saw revenues decline 5% to £50 million but this was in line with expectations as growth was offset by the planned termination of the Japanese leather goods licence in 2010.
