British luxury brand Burberry is planning further international expansion following a 30 per cent rise in total revenues during the last six months, according to a trading update published today.
Its second-half period ending March 31st saw retail revenues for the company grow 42 per cent to £596 million and comparable store sales increased by 13 per cent during the period.
Burberry has reported that all trading regions saw double-digit growth in sales during H2 but its ex-franchise stores in China performed particularly well.
In July 2010 the firm purchased 50 of its franchise stores based in the Asian giant and today reported around 30 per cent comparison growth in these outlets.
Angela Ahrendts, CEO of Burberry, commented: “Burberry had a strong finish to the year, driven by our design, digital marketing and retail initiatives, as well as good early progress in China.
“As a result, we expect adjusted profit before tax for the financial year 2010/11 to be around the top end of market expectations.”
Retail now makes up around 70 per cent of total revenues at the company but wholesale sales all grew significantly during the half, up 14 per cent to £214 million with menswear products performing particularly well.
Average selling space is now expected to grow by a further 12 to 13 per cent in the next year, with a strong focus on building a presence in Latin America and the Middle East while further increasing its stores in China.
UK operations outperformed expectations and despite consumer spending falling significantly in recent months, the luxury industry seems to be fairly resilient with Mulberry posting strong sales just last month.
Ahrendts added: “While the luxury industry faces global challenges in the year ahead, we remain confident in our team’s ability to outperform, underpinned by the consistent execution of our key strategies.”