UK retailer Burberry posts double digit growth in Q1

13 July 2012 (Last Updated July 13th, 2012 02:00)

Fashion retailer Burberry has reported double-digit sales growth in the first quarter of this fiscal, helped by strong growth in men's clothing and increased average selling prices.

Fashion retailer Burberry has reported double-digit sales growth in the first quarter of this fiscal, helped by strong growth in men's clothing and increased average selling prices.

Revenue in the first quarter totalled £408m, up from £367m in the corresponding quarter a year ago, despite challenging external environment.

Burberry chief executive officer Angela Ahrendts said with the continued brand momentum, the company has delivered a robust first quarter.

Retail revenues grew 14% to £280m in the three months to 30 June 2012, compared to £245m in the same period last year.

"Sales in retail, now about 70% of the business, increased by 14%, with initiatives to elevate brand equity balanced by improved store productivity and new space," added Ahremdts.

During the same period, comparable store sales or sales at stores open for at least a year increased 6%.

Burberry recorded strong mainline growth in comparable store sales in the UK, France, Germany and Greater China, but Italy and Korea remained weaker markets.

The British retailer said that mainland China delivered double-digit comparable growth, with Beijing being particularly strong market.

Burberry, in the first quarter of this fiscal, opened six mainline stores, including the fourth stores in Brazil and Hong Kong, and closed two of its outlets.

The company said two large flagships in London and Chicago are due to reopen later this year, in addition to openings in Milan, Hong Kong and Shanghai.

In the year to 31 March 2013, the firm planned a 12-14% increase in average retail selling space, with a shift from smaller to larger format stores.

As of 30 June 2012, Burberry had 196 retail stores, 207 concessions, 48 outlets and 58 franchise stores across the world.