Luxury fashion retailer Burberry has proved the continuing demand for designer clothing this morning, by posted strong sales for its first quarter period.
In the three months to June 30th 2011, total revenues at Burberry increased 34 per cent to £367 million, whilst retail revenues totalled £245 million with an impressive improvement of 49 per cent year-on-year.
Excluding its Chinese operations, which have expanded significantly over the last year or so, comparable store sales jumped 15 per cent compared to the same period last year.
Chinese stores contributed 20 per cent to the underlying growth in retail sales during the period and the Asia Pacific was easily the best performing region for the UK firm, with revenues rising 67 per cent.
Angela Ahrendts, CEO of Burberry, said: “We are pleased with Burberry’s start to the year, with double-digit growth balanced across retail and wholesale and all regions and product categories.”
Burberry’s two core product categories of outerwear and large leather goods led the way during the period, representing nearly half of the growth in mainline sales, whilst both local luxury customers and tourist markets contributed well to trading.
Five stores opened during the quarter including ones in Hong Kong, Sydney and Chennai, and the added Chinese stores are expected to add about 11 per cent to average selling space in the first half of this year.
Approval has been granted for a joint operation in Saudi Arabia, which Burberry holds a 60 per cent stake in, meaning five stores previously operating as franchises have now been transferred to directly-operated outlets.
“Our exceptional team continues to capitalise on our unique British and outerwear heritage, develop our global retail presence and employ innovative digital technology, specifically marketing to the younger luxury consumer,” Ahrendts added.