Home / Knowledge / News / Apparel/Garments / Burberry delivers robust first quarter revenues

Burberry delivers robust first quarter revenues

12
Jul '12
Burberry Group Plc releases First Quarter trading update and Interim management statement.

Highlights

  • Total revenue £408m, up 11% underlying
  • Retail revenue £280m, up 14% underlying

- 6% comparable store sales growth

- Led by UK, France, Germany and Greater China

  • Wholesale revenue £102m, up 9% underlying

- Benefiting from earlier deliveries

- Consistent with mid single-digit % underlying growth expected in H1

- Including planned rationalisation in US and Europe

  • Licensing revenue £26m, down 5% underlying

- Q1 impacted by phasing of licence terminations

- Full year still expected to be broadly unchanged year-on-year

  • Further strategic and operational progress

- Continued elevation of core outerwear and large leather goods

- Strong growth in men’s tailoring and accessories

- Six mainline stores opened

- Including fourth store in Brazil and Russell Street in Hong Kong

- Investment in flagship markets continues

- Key openings later this year in London, Milan, Chicago, Hong Kong and Shanghai

Angela Ahrendts, Chief Executive Officer, commented:

“With continued brand momentum, Burberry has delivered a robust first quarter.  Revenue was up 11% against a more challenging external environment.   Sales in retail, now about 70% of the business, increased by 14%, with initiatives to elevate brand equity balanced by improved store productivity and new space.

Building on our balanced business model and strong operational foundation, we continue to invest in our retail, digital and marketing strategies to drive long-term sustainable growth, while remaining responsive to the changing external environment.”

Retail

Retail sales in the first quarter increased by 14% at constant and reported FX.  Within this, comparable store sales growth was 6%, with the balance from new space.

In mainline, there was a further increase in average selling prices, driven by product innovation, a higher penetration of Burberry Prorsum and London and rationalisation of opening price point products in core outerwear and accessories.  Men’s tailoring and non-apparel again performed strongly, as did new merchandising strategies in soft accessories.

Within the comparable store sales growth, there was strong mainline growth in the UK, France, Germany and Greater China, while Italy and Korea remained weaker markets.  Mainland China delivered double-digit comparable growth, with particular strength in Beijing.  Two large flagships in London and Chicago are due to reopen later this year.

During the first quarter, Burberry opened six mainline stores including the fourth store in Brazil (JK Iguatemi mall in São Paulo) and Russell Street in Hong Kong, and closed two.  In the year to 31 March 2013, a 12-14% increase in average retail selling space is planned, with a shift from smaller to larger format stores.


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Feb 2020

France unveils environment score system for apparel

France has launched a system under which apparel may now display a...

Pic: Shutterstock

Textiles | On 21st Feb 2020

Indian textiles ministry to back small-scale firms

The Indian textiles ministry will contact small-scale manufacturers...

Pic: Shutterstock

Textiles | On 21st Feb 2020

India overtakes UK, France to be 5th largest world economy

India is now the fifth-largest world economy in 2019 with a gross...

Interviews View All

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli, Epson, For.Tex & F.lli Robustelli

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Footwear industry, Head honchos

Footwear industry
Head honchos

Personalised and differentiated footwear is in high demand

Wolfgang Muller,

Wolfgang Muller

Mayer & Cie is a leading global manufacturer of circular knitting...

Francesca Polato,

Francesca Polato

Berto Industria Tessile was founded in Bovolenta, a small town in the...

Kuldeep Pareek,

Kuldeep Pareek

Italian company Schoch Reeds has been producing high-quality weaving reeds ...

Ashok Desai, Bombay Textile Research Association

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Yash P. Kotak, Bombay Hemp Company

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

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

Leave your Comments


February 2020

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


Advanced Search