Home / Knowledge / News / Apparel/Garments / Burberry delivers 30% increase in revenue in Q3
Burberry delivers 30% increase in revenue in Q3
18
Jan '11
Burberry Group plc, the global luxury company, reports on trading for the three months to 31 December 2010.

Highlights

• Total revenue up 27% underlying (up 30% reported)
o Strong consumer demand in both retail and wholesale
o Consistent double-digit growth across all product divisions
o Double-digit comp growth across the Americas, Asia Pacific and Europe

• Retail sales up 36% underlying (up 40% reported)
o Comparable store sales growth of 14%
o Acquired stores in China comp up over 30%
o Outerwear and large leather goods drove about half of growth

• Wholesale revenue up 15% underlying (up 15% reported)
o Up 35% underlying excluding China
o Second half underlying revenue now expected up high teens % excluding China
o Revenue upgrade of over £10m evenly split between Americas, Asia Pacific and Europe
o Strong consumer demand leading to higher in-season orders

• Further strategic and operational progress
o Seven mainline stores opened, including São Paulo, Brazil and Puebla, Mexico
o Rapid integration of Chinese operations on track
o Digitally advanced flagship opened in Beijing
o More dynamic replenishment capabilities supported growth

Angela Ahrendts, Chief Executive Officer, commented:
“The Burberry team delivered a 30% increase in revenue in the third quarter, with strong, consistent growth in both retail and wholesale and in every product division and region. As a result, we now expect adjusted profit before tax for the current financial year to be at the top end of market expectations. Ongoing initiatives in retail, digital, product development and new markets underpin our confidence in the future.”

Retail
Retail sales in the third quarter increased by 36% on an underlying basis (up 40% at reported FX). New space generated 8% of this underlying growth, while China, which transferred from wholesale to retail on 1 September 2010, contributed a further 14%.

Comparable store sales in the third quarter grew by 14%, with mainline stores significantly outperforming. The Americas, Asia Pacific and Europe all delivered double-digit comparable store sales growth, with particular strength in the UK, France, Hong Kong and Taiwan. Comparable store sales growth in China was over 30% in the acquired stores. These Chinese sales were not included in Burberry's 14% comparable growth for the quarter.

In mainline retail, all four product divisions (non-apparel, women's, men's and children's) delivered strong, consistent growth, with outperformance from Prorsum, shoes, small leather goods and men's accessories. Helped by improved replenishment capabilities, outerwear and large leather goods again accounted for about half of the growth. This mix benefit contributed to a further increase in average price per unit sold.

During the third quarter, Burberry opened seven mainline stores, including São Paulo, Brazil; Puebla, Mexico; the first Brit store in Europe in Milan; and a flagship store in Beijing, showcasing its most advanced digital in-store technology. For the second half, average selling space is expected to increase by about 25% as previously guided. About 15% of this is in China (both acquired stores and new openings), with the balance of about 10% across other regions.

Must ReadView All

Courtesy: Li & Fung

Textiles | On 24th Mar 2017

Li & Fung forms new supply chain partnership with PVH Corp

Li & Fung Limited, the world's leader in consumer goods design,...

Courtesy: Alizilla

Apparel/Garments | On 24th Mar 2017

Alibaba's eWTP finds first overseas base in Malaysia

In a step towards using the internet to bring small businesses around ...

Textiles | On 24th Mar 2017

BJMC to produce cotton-jute blended denim fabrics

To meet demand from the market, Bangladesh Jute Mills Corporation...

Interviews View All

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Yashiki Gumber
Sahiba Fabrics

Fabric does not restrict us from fashion trends

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search