LONDON — Burberry Group plc reported a 22 percent rise in third-quarter revenues Tuesday, driven by strong sales of outerwear and large leather goods, along with a surge in sales in the Asia-Pacific region.
Revenues rose to 574 million pounds, or $901.2 million, in the three months to Dec. 31, from 470 million pounds, or $737.9 million, in the same period last year. Including the now-discontinued Spanish operations in the comparison, which contributed 10 million pounds in the third quarter of 2010, revenues rose 19.6 percent. Dollar figures have been calculated at average exchange rates for the period.
Angela Ahrendts, chief executive officer of Burberry, said the figures marked a “strong performance” for the brand. “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,” she stated.
Retail sales, which represent 70 percent of Burberry’s revenues, grew 24 percent to 417 million pounds, or $654.7 million. On a same-store basis, retail sales grew 13 percent. Along with sales of large leather goods and outerwear, sales of Burberry London products, knitwear, men’s accessories and tailoring were among the categories driving revenues, Burberry said. Wholesale sales rose 16 percent to 130 million, or $204.1 million, the company said, benefitting from an improved supply chain and flow of product.
In terms of regions, Asia-Pacific grew the most, with revenues there rising 39 percent to 210 million pounds, or $329.7 million. In China particularly, same-store sales increased 30 percent during the period. And the company said its “flagship markets,” including London, Paris, Beijing and Hong Kong, all “outperformed,” driven by purchases by traveling luxury consumers. On that note, Stacey Cartwright, executive vice president and chief financial officer at Burberry, said the company is “just as prepared” for Chinese New Year, which begins Monday, in its London stores as it is in Beijing.
Europe’s revenues grew 21 percent to 160 million pounds, or $251.2 million, while the Americas grew at a far slower rate of 4 percent to 148 million pounds, or $232.4 million.
Cartwright said that in terms of wholesale growth in the Americas region, Burberry’s sales into major department stores were “up in the teens” in terms of percentage growth, but that rise had been offset by Burberry not continuing with its sales of off-price merchandise, which she said is part of Burberry’s strategy of “elevating the brand and walking away from activities that are not brand enhancing.” Retail performance in the Americas was up “high single digits” Cartwright said, against strong double-digit comparisons in the same period last year.
Licensing revenue grew by 19 percent during the quarter, to 27 million pounds, or $41.6 million. The company said eyewear and fragrance showed “excellent” growth, the latter boosted by the launch of the Burberry Body fragrance.
In a research note Tuesday, Freddie George at Seymour Pierce said the figures “should be received positively by the market. Burberry has excellent strategic growth opportunities in a luxury market with strong long-term growth credentials,” he said. “There are significant geographical and product mix opportunities plus operational leverage still to come from infrastructure investment over recent years.”
Ahrendts stated that the company continues to stay mindful of “the challenging macroenvironment,” while “executing our proven core strategies to achieve long-term sustainable growth.” The company plans to increase its retail space between 13 and 14 percent in the second half, and expects its wholesale sales to increase by “midsingle digits” in the second half.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)