Tuesday, April 15, 2008 (UK)
Burberry Group plc, the global luxury company, has released half yearly report for the six months to 31 March 2008.
• Total revenue increased by 18%
• Retail revenue up 17%, comparable store sales growth of 6%
• Wholesale revenue increased by 25%
• Licensing revenue unchanged, as expected
Total revenue in the second half increased by 18% on an underlying basis (19% reported), with consistent double-digit growth in both the retail and wholesale channels and in all regions except Spain. The modernisation of our core icons, our diversified product offering and consistent marketing message continue to appeal to consumers globally.
Retail sales, which accounted for over 50% of total revenue in the second half, increased by 17% on an underlying and reported basis. Non-apparel continued to outperform, driven by handbags, shoes, soft accessories and men’s accessories. Product innovation is driving strong growth in apparel in areas such as seasonless and fashion outerwear, knitwear and dresses.
Wholesale revenue, which accounted for 40% of total sales in the second half, increased by 25% on an underlying basis (28% reported), in line with our guidance. As with retail, non-apparel and outerwear were the best performing categories. A more balanced product offer, the more frequent flow of goods to customers and our basic replenishment programme contributed to growth in all ranges.
In North America, our product and marketing strategies resulted in increased penetration of our brand in department stores in key product categories. There were very strong performances from North America and Europe, where wholesale revenue by origin in both regions increased by over 40%. Sales growth in Asia was in excess of 20%, with particular strength in China. Spain remained weak year-on-year.
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