Leather bags 'outperform' for growing Burberry - leatherbiz: Leading n Leatherbiz

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Leather bags 'outperform' for growing Burberry

18/04/2013
Burberry’s strategy to focus on the upper end of the luxury market seems to have paid off, with better-than-expected first-half results driven by strong sales in China.

Total revenue was up 9% to $1.12 billion, with double-digit rises in China and Hong Kong.

The UK luxury brand opened 10 stores in the period to March 31, and said its leather bag division “outperformed”.

Burberry CO Angela Ahrendts said: “With three-quarters of our revenue now generated in retail, we are pleased with the 13% growth in this channel in the second half, driven by continued innovation in product, marketing and customer service, especially over Christmas and Chinese New Year.”

Last year, the company raised the minimum price of its signature trench coat and moved their manufacture from China to Europe. It surprised the markets with a profit warning in September, but has recovered well since then.

UK leathergoods rival Mulberry issued a profit warning last month.


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