LONDON — Burberry’s burgeoning fleet of retail stores in 25 flagship markets worldwide will continue to be the engine behind growth, said a bullish Angela Ahrendts during a conference call after the company reported first-half profits Tuesday.
Burberry’s chief executive officer said that in the six months to Sept. 30, sales were “very strong and balanced” in cities such as London, New York, Paris, Dubai and Hong Kong, and that retail stores in Burberry’s flagship markets generated more than 60 percent of revenue.
“We have 25 ‘Londons’ around the world — that’s the way we think about it, and that’s where the business is focused now,” said Ahrendts. “What we’re talking about are high-demographic markets that have a strong local clientele and that cater to traveling luxury consumers.”
Profits at Burberry rose 26 percent to 115.9 million pounds, or $187.8 million, in the period. As reported, sales rose 29.4 percent to 829.6 million pounds, or $1.34 billion. All figures have been converted at average exchange rates for the six months.
Burberry said that during the six-month period, comparable retail store sales increased 16 percent, driven by the monthly flow of new product, enhanced replenishment processes, the global buy, sales and service initiatives. The balance of growth came from new stores globally, as well as the units Burberry acquired in China.
Ahrendts also swatted away persistent questions from media outlets about the dangers of a slowdown in Chinese demand.
“China generates 10 percent of our global revenue, so we are not overly dependent on it. It’s a fast-growing market, and we are investing there,” she said. “But of our 25 flagship cities worldwide, just two are in China. Burberry plays in Beijing and Shanghai. It does not play across China.”
Burberry said Tuesday that planned capital expenditure remains at 180 million pounds to 200 million pounds, or $286 million to $320 million, for the 2011-12 year.
A net eight mainline stores opened in the first half, and the company said there would be a continued focus on “flagship openings and refurbishments in high-profile markets.”
Ahrendts named Istanbul, New Delhi and Brazil’s major cities as having the potential of New York and London. “There are pockets all over the world” with pent-up demand, she said, adding, “The luxury sector is projected to be up 10 percent next year, and the flagship markets are also projected to rise.”
Burberry said revenue from nonapparel — such as large leather goods, men’s accessories and soft accessories — remained the largest product division, generating 39 percent of wholesale and retail revenue.
Emerging markets, such as China and the Middle East, accounted for 19 percent of wholesale and retail revenue in the period.
Luxury handbag resale company @rebagofficial is planning to sell a rare collectible for $70,000: the @hermes White Crocodile Himalayan Birkin. The exclusive Birkin sold for about $100,000 in 2008, when @davidbeckham bought one for his wife @victoriabeckham to add to her collection. Read more about the rare Birkin on WWD.com #wwdaccessories
With her costume pearl necklace and what-you-see-is-what-you-get style, Barbara Bush, who died Tuesday at age 92, was a straight-shooter from start to finish.
Born Barbara Pierce in New York City, Bush served as the 37th first lady, as well as the country’s second lady from 1981 to 1989. In addition to being part of the longest presidential marriage — 73 years — Bush also had the unlikely distinction of having one son, George W., become the 43rd president and another son, Jeb, run unsuccessfully in 2016. Having served as second lady during the Reagan administration’s two terms and lived all over the world during her own husband’s ascending political career, Barbara Bush made it clear that literacy — not fashion — was her priority. Read more from Rosemary Feitelberg’s obituary on the late First Lady in WWD.com, link in bio. #barbarabush #wwdnews
Western and ’90s trends have influenced denim for fall 2018. Think raw, dark and coated jeans mixed with bold prints and tough leather. #trendtuesdays #wwdfashion (Styled by @thealexbadia;📷: @ryanplett)
@denimdaysfestival, which initially launched in Amsterdam in 2014 and has since expanded to New York, is heading to Nashville for the very first time. The two-day festival, which will take place in November, will feature brand activations, hands-on workshops by artisans and denim mills, a vintage market, live entertainment, and local food and drinks. Get all the details on WWD.com. #wwdnews #wwdfashion
Later this month, the popular “Diana: Her Fashion Story” exhibit will be reopening. @historicroyalpalaces, the charity that manages @kensingtonroyal, has been working towards adding new, never-before-seen garments to the exhibit, including this dress created by Gianni Versace for a fund-raising dinner at the Museum of Natural History in Chicago. The exhibit will reopen on April 26 at Kensington Palace @wwdfashion
“Our family has always been engaged and interested in the world around us. [My brothers and I] were always encouraged to have our own opinion at a young age, which is not always something a child is asked — especially to have an opinion with reasoning behind it,” said @yarashahidi on becoming an activist. We caught up with the 18 year old last week, where she talked about her road to acting, how “Black-ish” led her to start conversations about identity and more. Head to WWD.com to read what she had to say #wwdeye (📷: @chelsealaurenla)