Beating the slowdown blues in the British apparel retail industry amid soft demand conditions, London-based luxury trench coat maker Burberry Group Plc. clocked up impressive growth in the first half of this year.
The 157-year old group, well known for its camel, red and black check pattern, witnessed a net profit of 113 million pounds in the first half of FY 2013-14 ended September 30, 2013.
In the first six months of fiscal 2012-13, the company posted a net profit of 85 million pounds.
The company clocked a sales growth of 17 per cent as revenue reached 1,031.5 million pounds in the first half of the current financial year from 882.5 million pounds in the same period a year ago.
Burberry’s impressive earnings growth comes even when hard-pressed Britons are facing high inflationary pressures and weak wage growth.
Retail revenue rose 17 per cent to 694.5 million pounds in the first half of the current financial year from the same period a year ago, driven by a 13 per cent increase in comparable store sales with the men’s outwear segment delivering impressive growth.
Earnings in the first half of the year were boosted by online sales even as footfalls remained subdued despite the company opening 14 stores in high potential markets.
The company is hoping that its strong focus on retail, digital and marketing strategies will help Burberry in posting solid revenue growth in the all-important third quarter.
Continued digital innovation underpinned strong brand momentum at Burberry in the first half of the current financial year. With the help of iPhone 5s, every aspect of the Spring/Summer 2014 women’s runaway show was filmed while the Art of the Trench events in Paris helped market outerwear.
Burberry is getting ready for a change of guard with Christopher Bailey set to fill in the shoes of Angela Ahrendts as chief executive officer when she leaves mid-next year.
Fibre2fashion News Desk - India