Burberry to expand in 2012 after sales surge

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The Independent Online

Burberry is planning to expand its store space by more than 10 per cent after a bumper finish to its financial year.

The 155-year-old maker of raincoats and handbags posted a 32 per cent surge in revenues to £390m in the three months to March, which it said would result in full-year profits at the top end of expectations.

Burberry, best known for its camel, red and black check, said it would increase store space by 12 per cent to 13 per cent in average retail selling space in the financial year to March 2012, mainly in China, Latin America and the Middle East.

The retailer warned licensing revenues in Japan, where a licensed dealer sells Burberry goods to about 800 outlets, would be broadly flat throughout the year.

Burberry and the luxury sector has experienced a more rapid recovery than the rest of the retail sector, driven by demand from Chinese shoppers and tourists.