Companiesandmarkets.com

Burberry sales boosted by its spring and summer collections

Press Release   •   Jul 10, 2013 12:04 BST

Fashion house Burberry said and an "exceptional" performance of the spring and summer collection helped drive underlying retail sales up by 18 per cent to £339m in the first quarter of the year.

On a same-store basis, sales were 13 per cent higher, but the company remained cautious in what it described as an "uneven" trading environment. It said first half profits are expected to be in line with expectations and below the level seen last year.

Outerwear and large leather goods accounted for more than half the growth, according to Burberry. Men's accessories and tailoring outperformed, and the trenchcoat maker sold more of its higher-priced Prorsum and London lines as a percentage of sales, it said. Customer traffic increased strongly online, while visits to the stores were "soft."

Chief executive Angela Ahrendts said the success of its marketing campaigns and runway shows had also helped boost its performance in the quarter.

"Spring/Summer 2013 was a standout season driven by innovative marketing, cohesive monthly fashion groups and exceptional execution from all corporate and regional teams," she explained.

The group held its first menswear show in London last month, with clothes that epitomised a quintessentially British style such as fisherman's jackets, oxford shirts and duffel bags.

By region, the group saw double-digit comparable store sales growth in Asia Pacific, driven by Hong Kong and China, and the Americas and high single-digit growth in the Europe, Middle East, India and Africa (EMEIA) division.

Seven stores were opened in the quarter including two in Shanghai and a third store in Mexico, while six were closed. Burberry now has 207 retail stores, 212 concessions, 50 outlets and 64 franchise stores.

Follow us on Twitter @CandMResearch

Companiesandmarkets.com issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.