• Linkdin
Maximize your media exposure with Fibre2Fashion's single PR package  |   Know More

Burberry retail revenue up 13% in six months to March 31

17 Apr '13
4 min read

Product, marketing and customer service initiatives drove strong performance in the festive periods in both the third and fourth quarters.
 
In mainline, footfall remained soft and was mitigated by improved conversion rates and higher average transaction values. Consumer preference was again weighted towards fashion and outerwear in Prorsum and London, where the penetration increased by four percentage points. Within the handbag category, leather and key shapes outperformed. Mens accessories and tailoring continued to perform strongly and the Spring/Summer womens Brit collection was well-received. Digital outperformed, enabled by investment in infrastructure, content and marketing.
 
By region, double-digit comparable store sales growth was delivered in Asia Pacific and Rest of World; Americas saw low single-digit growth and Europe was broadly unchanged. China and Hong Kong grew double-digit, while Korea and Italy remained weak.
 
During the second half, Burberry opened 10 mainline stores and closed two, bringing the total to 206 at the year end (a net increase of 14 in the year). Openings included the rebuilt Chicago flagship, the menswear standalone store in Knightsbridge, a further trial store in Japan and three additional stores in Brazil. Average retail selling space in the second half increased by 14%.
 
Wholesale
Wholesale revenue in the second half decreased by 3% underlying and 5% at reported FX, in line with guidance. Sales to North American department stores, Asia Travel Retail and Emerging Markets partners continued to grow. Europe, Burberry’s largest wholesale region, saw further planned account rationalisation and weakness in local demand, leading to a double-digit percentage decline in revenue. Globally, outerwear and mens performed strongly.
 
A net three franchise stores were opened in the second half, including a further two with Burberry’s new partner in the Baltic region.
 
Licensing
Total licensing revenue in the second half increased by 3% on an underlying basis (up 5% at reported FX). This performance is consistent with full year guidance of broadly unchanged revenue at constant and reported exchange rates, to give FY 2013 revenue of £109m.
 
Royalty income from Japan was down mid single-digit percentage as planned, reflecting continued rationalisation of Japanese accessories licences. Global product licences delivered strong double-digit growth, with product launches in the half including Body Tender fragrance, The Britain watch and the Splash sunglasses collection.
 
Burberry began directly operating fragrance and beauty from 1 April 2013 and has successfully assumed control of product development, sourcing, logistics and relationships with distributors worldwide. This business will form Burberry’s fifth product division, Beauty.
 

Burberry

Leave your Comments

Esteemed Clients

TÜYAP IHTISAS FUARLARI A.S.
Tradewind International Servicing
Thermore (Far East) Ltd.
The LYCRA Company Singapore  Pte. Ltd
Thai Trade Center
Thai Acrylic Fibre Company Limited
TEXVALLEY MARKET LIMITED
TESTEX AG, Swiss Textile Testing Institute
Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)
Taiwan Textile Federation (TTF)
SUZHOU TUE HI-TECH NONWOVEN MACHINERY CO.,LTD
Stahl Holdings B.V.,
X
Advanced Search