Burberry boosted by new stores
Fashion retailer recovers from challenging start to year
July 14 2003
Fashion retailer Burberry saw retail sales increase by 33 per cent in the first quarter to June 30, boosted by new store openings.
Retail figures were also helped by the acquisition of Burberry’s Korean distributor. Underlying retail sales increased by 21 per cent, with like-for-likes helped by strong summer promotions, which led to a marginal like-for-like gain across the quarter as a whole after a decline in the first half.
Burberry said the US remained its best performing market, with sales in Europe still soft, and some recovery in Asian markets outside Japan.
Total revenues for the group increased by 18 per cent, with wholesale revenue up 5 per cent across the quarter and licensing revenue up 7 per cent. Burberry is expecting a boost to wholesale revenues from its autumn/winter ranges, sales of which will feature mainly in the second quarter figures.
Chief executive Rose Marie Bravo said: “Following the very challenging start to the year due to external factors, Burberry achieved gradual improvement in trading as the quarter progressed.
“During the period, we continued to invest in our business through retail expansion, product development efforts and the upgrading of infrastructure in keeping with our long-range strategies. Burberry’s results to date and the improving operating environment are consistent with management’s expectations for the financial year.”
