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

Textiles | On 8th May 2021

French Development Agency to invest $83m in Ivory Coast cotton sector

Over a period of five years, the French Development Agency (AFD) will ...

Pic: Juki

Apparel/Garments | On 8th May 2021

Japanese companies collaborate to develop sewing machine business

Juki Corporation and Pegasus Sewing Machine Mfg have entered into a...

Pic: Rocky Brands

Apparel/Garments | On 8th May 2021

Rocky Brands expands Made in America capabilities

Rocky Brands has expanded the offering of its Made in America product ...

Interviews View All

Footwear Industry, Footwear Retailers

Footwear Industry
Footwear Retailers

Still struggling to mop up higher sales

Textile Industry, Head honchos

Textile Industry
Head honchos

Blockchains will be in heavy use by early adopters by 2025

Textile Industry, Head honchos

Textile Industry
Head honchos

Increased need for online fitting solutions as retailers shift to...

Harleen Kaur,

Harleen Kaur

Established in 2017 and headquartered New York, the label Harleen Kaur...

Ritu Oberoi,

Ritu Oberoi

Mumbai-based Forsarees is a socially driven business enterprise, working...

Chendhuran Sundar,

Chendhuran Sundar

It manufactures and retails menswear garments in India under the brand...

Madison Maxey, Loomia

Madison Maxey
Loomia

Loomia designs and manufactures soft circuit systems that can be produced...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Suresh Patel, Non Woven Federation of India

Suresh Patel
Non Woven Federation of India

The Non Woven Federation of India (NWFI), representing the regional...

Suman Nathwani, Suman Nathwani

Suman Nathwani
Suman Nathwani

Designer <b>Suman Nathwani</b> talks about her journey of opening a...

Ramya Rao & Kavea R Chavali, Kalaneca

Ramya Rao & Kavea R Chavali
Kalaneca

<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...

Seema Agrawal, Artisan Saga

Seema Agrawal
Artisan Saga

Artisan Saga, founded by Kaushik Rajani and Seema Agrawal, is an online...

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


May 2021

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


Advanced Search