Burberry sales soar

Burberry posted group sales of£546 million for the period to March 31, up 19 per cent year on year from£458 million. The company registered double-digit growth at both its retail and wholesale channels.

“Burberry had a good finish to the year, against the background of an increasingly challenging external environment,” said chief executive Angela Ahrendts in a company statement.

Burberry's retail sales, which accounted for more than half of total revenue during the period, increased 17 per cent, driven by particularly strong sales of handbags, shoes and accessories.

Burberry said that it had benefited from diversifying its product offering and adding stores and concessions globally. The company increased its selling space by 12 per cent year on year, opening nine stores during the second half, including its first standalone childrenswear store in Hong Kong. Burberry operates 97 stores globally, with 231 concessions and 40 outlets.

Burberry expects to increase its selling space by a further 12 to 13 per cent in the year to March 2009, to include 15 mainline store openings.

Burberry also expects a 10 per cent growth in its wholesale market during the six months to September 2008, with weaker markets like Spain offset by good growth in other regions, especially North America, where growth is expected to hit 20 per cent during the period.