Record results for Burberry
For British Burberry the first physical half year brings new record results
Burberry (clothing and leather bags) increased its turnover by 30 % to GBP 830 (GBP 641) million thanks to double-digit growth of 45 % in retail (64% of total sales) and of 9% in wholesale (30 % of total sales) and also most profitable. The operating result increased 25% from GBP 129.7 million to GBP 162.1 million. All geographical regions (Asia Pacific + 52 %, Europe + 18 %, the Americas + 27 % and others +35%) and product categories were contributing. Another 6% of total sales derive from licensing. Comparable store sales were up 16% and mainline and flagship markets outperformed. The reasons for the excellent results in retailing: digital marketing, sales and service programmes, innovation in core outerwear and large leather goods, replenishment and Burberry Prorsum and London. In the wholesale are the increase would be even 20% when China is excluded and the growth drivers resulted from the two Americas, emerging markets and travel retail and products such as shoes, children’s wear, men’s accessories and tailoring. Important investments were made in North America where wholesale doubled its sales up to 8% of the group’s revenue and a further significant growth will be expected by increasing the number of dedicated shop-in-shops. The company is confident that also the new installed information technology platform and its strategy will bring further success amid turbulent economic and financial times.