Burberry building on strong sales growth
New stores planned for fashion brand
Burberry is to expand its retail offer as it builds on the strong popularity of its branded fashion offer.
The upmarket retailer, majority-owned by GUS, said that in the six months to March 31, its underlying retail sales rose 12 per cent on a total basis, and 7 per cent on a reported basis, driven by strong fourth quarter sales.
Total group sales increased by 13 per cent, with wholesale revenues up 16 per cent and licensing revenue up 17 per cent.
[img r]burberryfloral.jpg[/img]While its trademark check remains core to the brand, the company said it has expanded its appeal by offering clothing and accessories in a wider range of colours.
Burberry’s strong retail sales performance was driven ‘primarily by contributions from newly opened stores complemented by modest gains at existing stores’, said the company.
Five new stores opened across the half, including a new store in Houston, Texas, and a store in New York was expanded. The opening of the first Burberry store in Russia, working with a local partner in Moscow, helped to boost wholesale sales.
The brand’s appeal to other retailers has also grown, with wholesale revenue, mainly sales to department stores, up 16 per cent.
The second half will see an 8 per cent increase in Burberry’s retail selling area through the opening of seven new stores and concessions and expansion of existing stores
[img l]burberrystripe.jpg[/img]Chief executive Rose Marie Bravo said: “Building on first half success, Burberry continued to achieve strong results in the second half of 2003/04. In particular, the outstanding response to our womenswear designs and use of colour throughout the product lines was a key catalyst across the business.
“This performance is consistent with expectations for the financial year.”
