Burberry reports sales boost thanks to Chinese shoppers
Wednesday 17 April 2013
British luxury brand Burberry allayed fears of a sales slowdown in China after announcing forecast-beating results.
The fashion group revealed a 9 per cent jump in sales to £1.116 billion in the six months to April, well ahead of analysts’ estimates.
It said demand from Chinese shoppers for its high-end products such as leather bags and coats helped it report a “strong finish to the year”.
Retail sales, a growing part of its business and now 75 per cent of the entire group, was up 7 per cent on a comparable basis to £840 million.
Its shares gained 58p to 1324p on news of the healthier results.
Angela Ahrendts, chief executive, said the brand had a particularly strong “Christmas and Chinese New Year” but she expects “the external global environment to remain challenging”.
Finance boss Stacey Cartwright, who will leave the leave in July to be succeeded by Carol Fairweather, said Burberry now has “strong brand momentum” and said a sales surge of expensive leather handbags such as its Blaze and Orchard handbags confirmed this.
The sales results will be a relief to those concerned about growth potential for the global luxury sector. Concerns were raised on Monday when luxury goods giant LVMH revealed its weakest quarterly growth rate since 2009.
Burberry’s move to retail and its reduction of wholesale, particularly in Europe, generated a 3 per cent dip in sales for the period to £220 million.
Cartwright said: “Wholesale has been affected by rationalisation of our accounts in Europe due to credit issues or the positioning of the account not being right.”
Footfall across stores in all regions has been weaker as “aspirational consumer reigned in spending”, Cartwright said.
But the brand will continue to open stores and has three planned in Shanghai. Burberry said it is “thrilled with the success” of its Regent Street store that opened last year.
Cartwright added: “We have Kaiser Chiefs playing there next week. It is about bringing the Burberry brand to London.”
Burberry is focused on growing its beauty arm after it took the licence to its perfume business in house.
The group will reveal its preliminary results in May.
Board creates magnetic field to achieve lift
Singer says the track was 'force-fed down people's throats'
Endangered species spotted in a creek in the Qinling mountains
Company says data is only collected under 'temporary' identities that are discarded every 15 minutes
Trend which requires crisps, a fork and a strong stomach is sweeping Mexico's streets
George Lucas criticises the major Hollywood film studios
Some experiencing postnatal depression don't realise there is a problem. What can be done?
- 1 Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
- 2 Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
- 3 Drink alcohol and eat meat to improve male fertility - but cut down on coffee, studies suggest
- 4 Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
- 5 The inventor of the Facebook 'like' button says he never made a 'dislike' button because he feared the 'unfortunate consequences'
Ukraine crisis: Donetsk 'tactical missile' explosion at factory sends blast wave across rebel-held city
Jack the Ripper: Scientist who claims to have identified notorious killer has 'made serious DNA error'
Banksy arrest hoax: Internet duped by fake report claiming street artist's identity has been revealed
Super-sized ships arrive in Britain: How big can they get?
Former East 17 frontman Brian Harvey turns up at Downing Street and 'demands to speak to Prime Minister'
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Lord Freud: Tory welfare minister apologises after saying disabled people are 'not worth’ the minimum wage
Lord Freud hangs on as MPs of all parties 'call for his head' over disability comments
iJobs Money & Business
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...
£18 - 23k + Benefits: Guru Careers: We are seeking a Customer Service Executiv...
£60 - 65k + Benefits: Guru Careers: We are seeking a ASP.NET Web Developer / ....