Burberry with increasing sales
Burberry Group reports strong own store sales for the third quarter thanks also to China. The company is cutting its forecast for sales to other retailers because of the difficult economic situation in Italy.
Sales in China were slowing in the second quarter but recovered in the third quarter of the fiscal year (Dec. 31) brining Burberry’s Asia Pacific region a 15 % jump in sales. Burberry’s total sales rose 9% to GBP 613 million (around USD 985.5 million), analysts expected only GBP 602 million. Retail sales from the own stores accounted for almost three quarters of revenue and were rising 13 % to GBP 464 million and compensating the five percent fall to GBP 120 million in wholesale revenue, generated from department stores and independent shops, mostly deriving from the weakness of the Italian business, because it is the largest of Burberry’s wholesale markets.
Burberry will increase its selling space by 14 % in the second half of 2013.