China laps up Burberry's brand of luxury fashion

Revenues at Burberry continued to power ahead in its first quarter, as global demand for luxury products shows no sign of abating.

The British fashion brand was particularly boosted by its operation on mainland China, but it also named Taiwan, the US, France, Germany and the Middle East among its "best-performing markets". In fact, Burberry delivered double-digit growth across all regions, retail, wholesale and product categories over the three months.

Stacey Cartwright, the finance director of Burberry, said that it was "the established markets as well as the emerging ones", although she noted that the company's performance in Spain and Italy was "softer".

For the three months to 30 June, the 155-year-old company fashioned a 34 per cent leap in total revenues to £367m. Burberry shares, which topped the FTSE 100 with a 7 per cent climb to 1,531p yesterday, have risen nearly 10-fold since the end of 2008 as the luxury sector has returned to form. The group grew profits by 39 per cent to £298m for the year to the end of March 2011.

Burberry acquired 50 franchise stores in China last September and the country contributed 20 per cent to the 49 per cent leap in its retail sales to £245m in the first quarter. While Burberry's Asia-Pacific unit registered the biggest increase, with revenues up 67 per cent, it grew by 21 per cent in Europe, 26 per cent in the Americas and 27 per cent in the rest of the world.

At a product level, Burberry cited strong performance from menswear, kidswear and accessories, including bags for men to carry laptops and iPods.

But Burberry's operating margins are set to fall in the first half, as it invests up to £200m this financial year in its stores, including refurbishing its Knightsbridge shop and a big new outlet on London's Regent Street by next spring. Ms Cartwright said: "In advance of the [2012] Olympics, we want to make sure the brand reality lives up to the fantastic perception that is out there and that is why we are making a big investment in two big flagships in Knightsbridge and on Regent Street."

Start your day with The Independent, sign up for daily news emails
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Sales Assistant / Buyer

£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...

Recruitment Genius: Customer Service Advisor

£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....

Recruitment Genius: Compliance Manager

£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...

Day In a Page

Is this the future of flying: battery-powered planes made of plastic, and without flight decks?

Is this the future of flying?

Battery-powered planes made of plastic, and without flight decks
Isis are barbarians – but the Caliphate is a dream at the heart of all Muslim traditions

Isis are barbarians

but the Caliphate is an ancient Muslim ideal
The Brink's-Mat curse strikes again: three tons of stolen gold that brought only grief

Curse of Brink's Mat strikes again

Death of John 'Goldfinger' Palmer the latest killing related to 1983 heist
Greece debt crisis: 'The ministers talk to us about miracles' – why Greeks are cynical ahead of the bailout referendum

'The ministers talk to us about miracles'

Why Greeks are cynical ahead of the bailout referendum
Call of the wild: How science is learning to decode the way animals communicate

Call of the wild

How science is learning to decode the way animals communicate
Greece debt crisis: What happened to democracy when it’s a case of 'Vote Yes or else'?

'The economic collapse has happened. What is at risk now is democracy...'

If it doesn’t work in Europe, how is it supposed to work in India or the Middle East, asks Robert Fisk
The science of swearing: What lies behind the use of four-letter words?

The science of swearing

What lies behind the use of four-letter words?
The Real Stories of Migrant Britain: Clive fled from Zimbabwe - now it won't have him back

The Real Stories of Migrant Britain

Clive fled from Zimbabwe - now it won’t have him back
Africa on the menu: Three foodie friends want to popularise dishes from the continent

Africa on the menu

Three foodie friends want to popularise dishes from the hot new continent
Donna Karan is stepping down after 30 years - so who will fill the DKNY creator's boots?

Who will fill Donna Karan's boots?

The designer is stepping down as Chief Designer of DKNY after 30 years. Alexander Fury looks back at the career of 'America's Chanel'
10 best statement lightbulbs

10 best statement lightbulbs

Dare to bare with some out-of-the-ordinary illumination
Wimbledon 2015: Heather Watson - 'I had Serena's poster on my wall – now I'm playing her'

Heather Watson: 'I had Serena's poster on my wall – now I'm playing her'

Briton pumped up for dream meeting with world No 1
Wimbledon 2015: Nick Bollettieri - It's time for big John Isner to produce the goods to go with his thumping serve

Nick Bollettieri's Wimbledon Files

It's time for big John Isner to produce the goods to go with his thumping serve
Dustin Brown: Who is the tennis player who knocked Rafael Nadal out of Wimbeldon 2015?

Dustin Brown

Who is the German player that knocked Nadal out of Wimbeldon 2015?
Ashes 2015: Damien Martyn - 'England are fired up again, just like in 2005...'

Damien Martyn: 'England are fired up again, just like in 2005...'

Australian veteran of that Ashes series, believes the hosts' may become unstoppable if they win the first Test