Burberry like-for-like sales up 12% in second half
Burberry increased its like-for-like sales by 12% in the second half of its financial year as the luxury brand continued its investment in both offline and online retail.
In the six months to 31 March 2014, total revenue surged by 19% on an underlying basis to £1.298 billion while retail revenue grew by 13% to £928 million.
However, the group warned that retail and wholesale profit for the full year could fall by £30 million should current exchange rate levels continue and that the full impact on profits in 2015 could be “material”.
Burberry said all five of its product divisions delivered double-digit percentage growth in mainline retail. Core outerwear and large leather goods accounted for nearly half of the growth, with men’s accessories, men’s tailoring and women’s Prorsum also putting in strong performances.
Never Miss a Retail Update!Reflecting changing consumer behaviour, footfall was soft offline while online traffic grew. Conversion increased both on and offline
Looking at Burberry’s international performance, its Asia Pacific region saw double-digit percentage like-for-like sales growth led by Greater China and a continuing momentum in Korea. Americas and EMEIA both delivered mid to high single-digit percentage comparable sales growth.
During the second half, Burberry opened eleven mainline stores and closed nine. The group plans to launch between 20 and 25 mainline retail stores in the year ahead, with a focus on its flagship markets and travel retail. In addition, the brand will continue to develop its store portfolio in China and the Middle East.
Burberry chief executive Angela Ahrendts said: “We are pleased with our second half performance, with total revenue up 19% and retail sales up 13%, underpinned by the planned increase in investment in offline and online retail, innovative customer service and marketing.
“With the management transition well underway, Burberry begins a new year with Beauty firmly established as the fifth product division and investment in flagship markets, such as Shanghai, further increasing the brand’s appeal to the core luxury customer at home and when travelling. While current exchange rates are a material headwind in what remains an uncertain macro environment, our continued global brand momentum provides an excellent foundation for the future.”
