LONDON — Burberry Group plc reported Tuesday that second-half revenues climbed 17.1 percent in the six months ended March 31, to 1.03 billion pounds, or $1.61 billion, led by robust retail sales and the brand’s performance in Asia.
Stripping out Burberry’s now-discontinued Spanish operations from the same period last year, revenues grew 19.4 percent at actual exchange rates. All dollar rates have been calculated at average exchange rates for the periods in question.
Fourth-quarter revenues rose 16.1 percent to 453 million pounds, or $711 million.
Strong retail sales, which jumped 24.6 percent during the period to 743 million pounds, or $1.16 billion, boosted revenues. The firm said that same-store retail sales during the period rose 12 percent, and that stores in flagship markets within the U.K., France and China all performed strongly. Stacey Cartwright, executive vice president and chief financial officer at Burberry, said that in the company’s stores in cities such as London and Paris, traveling consumers continued to drive sales. “It’s the Russian customer, the Middle Eastern customers and Chinese customers,” said Cartwright.
Retail sales now make up 72 percent of Burberry’s revenues. Categories driving growth included the Burberry London line, knitwear, men’s tailoring and accessories, along with fragrance and watches.
Wholesale sales rose 7.4 percent during the half to 230 million pounds, or $361.1 million, which Burberry said was impacted by a planned shift from wholesale to retail in Saudi Arabia and Spain, along with the planned “rationalization” of the brand’s distribution in the U.S. and Europe.
Asia-Pacific was the best-performing region during the half, with retail and wholesale sales rising 37.7 percent to 387 million pounds, or $608 million. In Asia, Cartwright said China performed particularly well, as Burberry continued to reap the benefits of acquiring its Chinese business back from its distributor in the region in 2010. “We put in place a lot of strategies to drive retail sales, to do with merchandising, making sure we have inventory on the floor, making sure we’ve trained the store staff in terms of sales and service, and all of that has been driving disproportionate [same-store] sales growth,” said Cartwright. “Even in this last quarter…we still put on another 20 percent [same-store] sales growth in China.” Cartwright said Hong Kong also performed well, as did Singapore.
Sales in Europe rose 11 percent during the half. In the Americas, sales grew 7 percent, which Burberry said reflected the planned rationalization of wholesale distribution in the region as the label continues to halt sales of off-price merchandise. In terms of retail sales in the U.S., Cartwright said the label had seen a “high-single-digit” sales increase, and that its mainline sales in the region “are just tipping into double-digit [sales growth].”
Licensing revenues rose 10 percent to 54 million pounds, or $84.8 million, which the firm said stemmed from growth in fragrance, watches and eyewear.
In the year ahead, the company plans to open about 15 mainline stores with a focus on emerging markets and cities with “high tourist inflows.” Cartwright said openings are planned for Brazil, Chicago, Hong Kong and Shanghai, along with a 25,000-square-foot store on Regent Street in London.
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
The psychedelic fashion that pervaded the ’60s is back with an exhibit at the @museumofcityny. “Mode New York: Fashion Takes a Trip” chronicles the changing styles from 1960 through 1973 and features designers such as @ysl, @oscardelarenta and more. The exhibition, which is on display through April 1, is organized into four periods: First Lady Fasion, Youthquake, New Bohemia and New Nonchalance. Pictured here is model Pat Bardonella during the Garvey Day Parade in 1968. (📷: @kwamebphoto) #wwdeye #wwdfashion
“People should be a lot more honest in expressing both the dark and light of themselves. We need to give each other the space to do that because it’s the only way we can grow and evolve,” says @noelwells of her new film “Mr. Roosevelt,” which is largely based on her own struggles. Unexpectedly leaving @nbcsnl in 2014 after just one season, Wells felt set back in her self-esteem and career trajectory. She quickly refocused her energy to more personal projects, which led to the completion of “Mr. Roosevelt.” Read the rest of WWD’s interview with the “Master of None” actress on WWD.com #wwdeye (📷: @jilliansollazzo)
@barbrastreisand is giving fans a chance to see her perform up close in a new concert series, which makes its debut on @Netflix today. From behind-the-scenes takes to her concert performance in Miami last December, the two-hour streaming special captures Streisand in her element. Pictured here is the singer/actress photographed for WWD in 1963. (📷: Palmieri Tony) #wwdeye #wwdarchive
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)