Sales increase at Burberry
Wholesale sales account for approximately 54% of total revenue in the first half.
Retail sales accounted for approximately 35% of total revenue in the period. Retail sales in the first half increased 9% underlying, 12% reported, driven by contributions from new and refurbished stores. The acquisition of 12 retail locations in Taiwan during August 2005 also contributed to reported gains.
During the half, the Group opened a Burberry store in San Antonio, replacement stores in Zurich and Taipei and an outlet store. Burberry also opened six concessions, in Spain and Asia. Several store refurbishments were completed in the half including those in Frankfurt, Munich, Boston, Denver, Philadelphia, Washington DC and Westchester. On a year over year basis, average selling space increased approximately 8% in the half.
Retail sales performance varied by region in the half. In the US, solid sales growth was driven by contributions from new stores, complemented by gains at existing stores. Against strong comparatives, new stores and concessions drove sales growth in Continental European markets. The UK market, affected by external factors, continued to be soft. In Asia, Korea achieved a small gain in the half notwithstanding the difficult retail environment. Led by existing stores, Hong Kong and Southeast Asian markets generally achieved strong gains in the period.
Rose Marie Bravo, Chief Executive said “‘Burberry took several important strategic actions in the first half. We brought our Taiwan business under direct control, continued to rebalance the US channel mix, set the groundwork for direct distribution in Spain and announced an exciting new eyewear licence. In retail, with outerwear just entering high season, our Prorsum collection is the highlight of autumn/winter 2005 to date.’
