Quintessentially British fashion house Burberry has beaten expectations once more thanks to a strong performance in its third quarter. For the three months ending December 31, the luxury label saw revenue up by 21% to £574 million.
Burberry's revenues hit £574m for the three months to the end of December – ahead of some analysts' forecasts of £569m, reported The Guardian. Asia is proving to be Burberry´s golden token as growth in China and Northern Europe balanced weaker growth in the US market. Retail revenue rose 23% over the three months to December 31, driven by big gains of 36% in Asia and 20% in Europe.
"Burberry has delivered another strong performance, with a 21% increase in revenue in this important third quarter. Our investment in flagship markets and digital technology has enabled our global teams to continue to drive customer engagement, enhance retail disciplines and improve operational effectiveness, further strengthening brand momentum,” summarised Angela Ahrendts, Chief Executive Officer.
“Looking ahead, we remain focused on executing our proven core strategies to achieve long-term sustainable growth, while staying mindful of the challenging macro environment", Ahrendts concluded.
Sales of Burberry staples such as jackets and handbags, together with growth in knitwear, men's accessories and tailoring, fragrance and watches, brought retail like-for-like sales up by 13%, with comparable store growth in China up by around 30%.
During the third quarter, Burberry opened six mainline stores and closed four. New stores included the first flagship in Paris, a third store in Brazil in São Paulo and the fourth childrenswear store in the Middle East. Average retail selling space increased by 13% in the third quarter, with growth of between 13-14% now expected for the second half.