UK: Burberry Q3 sales rise beats expectations
- Q3 underlying revenues up 9% to GBP613m
- Underlying retail revenues up 13% to GBP464m
- Wholesale revenues down 5% to GBP120m
Luxury goods business Burberry outstripped market expectations with a 9% rise in underlying revenues in the third quarter, boosting retail revenues by 13% and comparable store sales by 6%.
The company said outerwear was responsible for about half of mainline growth, with scarves, men's tailoring and accessories also outperforming.
However, wholesale revenues were down 5%, with the company forecasting second half underlying wholesale revenue down by low to mid-single digits in percentage terms.
Burberry recorded growth in the US, Asia travel retail and emerging markets, but said this was more than offset by weaker trading in Europe.
Hailing a "particularly strong" week's trading in the run-up to Christmas, CEO Angela Ahrendts said: “In an otherwise difficult quarter, core outerwear, men's and digital all outperformed.
“We expect the external global environment to remain challenging, but see continued opportunities to drive productivity in our existing businesses, while investing for growth in under-penetrated regions, product categories, channels and mediums.”
A note from analyst Charles Stanley highlighted the prospects for increased confidence among global luxury goods consumers and said: “Under such conditions, our expectation is for Burberry to deliver further healthy growth in earnings and dividends over the medium term.”
While analyst Bethany Hocking at Investec added: "The company remains cautious and points to volatile trading and weak footfall, but nevertheless Burberry had a better Christmas than expected."
And Jon Copestake, retail analyst at The Economist Intelligence Unit, notes: "The underlying growth in these latest figures highlights a newfound confidence that, after a slight wobble in 2012, China remains on track to deliver growth. Burberry also looks set to broaden its appeal and exposure in 2013 by recruiting Romeo Beckham to model products.
"However, luxury retailers in general may be revisiting their Chinese operations soon. China's new Premier recently spoke out against ostentatious displays of wealth, and inflated luxury price strategies are encouraging consumers to shop abroad more often. Both could potentially undermine ongoing store investments in China."
Omni-channel services may be delivering, but they can be complex. The goal is delivering a seamless omni-channel experience for apparel buying consumers and if the tech doesn't work, the sales aren't ...
Luxury brand Burberry is working to "control the things it can control" as luxury footfall declines amid macroeconomic uncertainty around the world....
Continuing to develop its online offer is part of Burberry's attempts to manage the uncertain macro-economic environment. ...
Burberry has recorded a jump in first quarter retail revenue, which it said was driven by the exceptional performance of its spring summer collection. ...
The owner of the iconic Hunter wellington boot brand has announced a series of appointments to its senior team, including former Burberry executive Niall Sloan as global design director. ...
Paris-based Children Worldwide Fashion Group (CWF) has selected Centric Software's product lifecycle management (PLM) system to help streamline its product development process....
Luxury goods business Burberry has today (21 May) booked a 14% rise in full-year profit, bolstered by increased demand in China and Hong Kong and overseas store growth....
UK fashion retailer Supergroup has hired former Burberry distribution director Gordon Knox as its new head of logistics....
- Synergies Worldwide CEO unravels sourcing shifts
- Why have US FTA imports fallen to a record low?
- First figures show Bangladesh exports climb
- Collaboration key to the future of smart textiles
- Bangladesh still needs reforms to fix factories
- Hanesbrands to buy Pacific Brands for $800m
- Improving traceability a key industry challenge
- Retailer Austin Reed goes into administration
- Inditex renews global trade union agreement
- UK apparel market realising real benefits of RFID