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Burberry's handbags, outerwear & scarves sales strong
16 Jan '08
4 min read
Burberry Group plc, the global luxury company, reports on trading for the three months to 31 December 2007.
Third quarter highlights:
• Total revenue increased by 26%
• Retail revenue up 14%, with comparable store sales growth of 6%
• Wholesale revenue increased by 74% o
- Now expect over 20% growth for the second half (up from mid-teens growth previously)
As anticipated, the all-important third quarter was an intense period of activity for Burberry, with our new IT systems in warehousing and European retail operational for the first time.
Volume growth overall was high, driven by the strength of our products, and we continued to increase infrastructure costs to support this strong growth.
However, retail sales did come in modestly behind our plan, with proportionally more inventory sold during our usual sale period.
Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said: “In the third quarter, Burberry delivered 26% sales growth, with solid double-digit growth in all channels and regions, notwithstanding economic and internal infrastructure challenges.
This performance reflects the continued appeal of our new product and marketing strategies globally, and particularly in our high growth, under-penetrated regions including the United States, China and Emerging Markets.”
There will be conference calls to discuss this update today at 9am and 3pm (UK time). The conference calls can be accessed live on the Burberry website, with replays of both calls available later.
Burberry will release its Second Half Trading Update for the six months to 31 March 2008 on 15 April 2008. It will announce its preliminary results for the year to 31 March 2008 on 28 May 2008.
Total revenue Total revenue in the third quarter increased by 26% on an underlying basis (23% reported). There was solid double-digit growth in both retail and wholesale; with double-digit comparable store sales growth in major markets including the United States, Hong Kong and Emerging Markets. Luxury handbags, outerwear, shoes and other accessories, including scarves, were particularly strong.
Third quarter highlights:
• Total revenue increased by 26%
• Retail revenue up 14%, with comparable store sales growth of 6%
• Wholesale revenue increased by 74% o
- Now expect over 20% growth for the second half (up from mid-teens growth previously)
As anticipated, the all-important third quarter was an intense period of activity for Burberry, with our new IT systems in warehousing and European retail operational for the first time.
Volume growth overall was high, driven by the strength of our products, and we continued to increase infrastructure costs to support this strong growth.
However, retail sales did come in modestly behind our plan, with proportionally more inventory sold during our usual sale period.
Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said: “In the third quarter, Burberry delivered 26% sales growth, with solid double-digit growth in all channels and regions, notwithstanding economic and internal infrastructure challenges.
This performance reflects the continued appeal of our new product and marketing strategies globally, and particularly in our high growth, under-penetrated regions including the United States, China and Emerging Markets.”
There will be conference calls to discuss this update today at 9am and 3pm (UK time). The conference calls can be accessed live on the Burberry website, with replays of both calls available later.
Burberry will release its Second Half Trading Update for the six months to 31 March 2008 on 15 April 2008. It will announce its preliminary results for the year to 31 March 2008 on 28 May 2008.
Total revenue Total revenue in the third quarter increased by 26% on an underlying basis (23% reported). There was solid double-digit growth in both retail and wholesale; with double-digit comparable store sales growth in major markets including the United States, Hong Kong and Emerging Markets. Luxury handbags, outerwear, shoes and other accessories, including scarves, were particularly strong.
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