Second-half revenues at Burberry rose 19.3 percent, to 458 million pounds, or $886 million, from 384 million pounds, or $672.3 million, on the back of strong demand for spring runway looks, outerwear and handbags.
LONDON — Second-half revenues at Burberry rose 19.3 percent, to 458 million pounds, or $886 million, from 384 million pounds, or $672.3 million, on the back of strong demand for spring runway looks, outerwear and handbags.
In the full 2006-2007 fiscal year, sales rose 14.4 percent, to 850 million pounds, or $1.61 billion, from 743 million pounds, or $1.33 billion. All figures have been converted from the pound at average exchange rates for the periods to which they refer.
The company issued a trading statement Tuesday, and will release full results for the fiscal year ended March 31 on May 24.
Chief executive Angela Ahrendts said performance in the second half was consistent with expectations, and attributed the latest results to the "significant investment" in retail expansion, operations and a focus on enhancing the "luxury component" of the brand.
Since she took over as company chief last July, Ahrendts has also revamped the brand's selling schedule, increased the number of market weeks, created numerous brand extensions and bulked up the accessories and handbag offer.
Last month, Burberry added a line of performance sportswear for men and women, an at-home collection featuring cashmere robes and velvet slippers and an eveningwear component to its Icons collection of clothing and accessories.
Burberry said in a statement that in the first half of the current 2007-2008 fiscal year, retail selling space would increase 13 percent and the majority of store openings would be in the U.S. and Europe.
Wholesale sales growth is expected to be in the "mid-teens," compared with last year; licensing income is expected to be flat, and expenses from Project Atlas, the operational overhaul program, are on target at 15 million pounds, or $30 million at current exchange.
Commenting on the second half, Ahrendts said end-of-season sales activity in January was reduced, and that customers were enthusiastic about the spring collections.
Sales in all geographical regions rose in the six months up to March 31, the largest growth — percentage wise — coming from Europe. Sales there increased 30 percent, to 144 million pounds, or $278.6 million, from 111 million pounds, or $194.3 million.Growth in all sales channels grew, too; the largest increase came from retail sales, which rose 26 percent, to 241 million pounds, or $466.2 million, from 192 million pounds, or $336.2 million.
Average retail selling space increased by about 14 percent in the half, with the opening of six stores, eight concessions and one outlet.
The statement said the Spain wholesale-to-retail conversion contributed about 8 percentage points to the gain in retail sales.
Wholesale sales rose 14 percent, to 172 million pounds, or $332.7 million, from 151 million pounds, or $264.4 million, powered by increased penetration of core U.S. accounts, Europe and Asia.
The company said wholesale sales were also boosted in the period by Burberry's new stock replenishment program, and by incremental orders stemming from the updated market calendar.
Income from licensing rose 9.8 percent, to 45 million pounds, or $87 million, from 41 million pounds, or $71.8 million, driven mainly by Burberry's new global eyewear made by Luxottica Group, and the latest fragrance, Burberry Summer.
There'll be no rest for those headed to Europe for men's, as Paris just closed the gap with Milan. According to a provisional calendar released by the Chambre Syndicale, Paris Men's Week will now open a day earlier on January 16. See new highlights on the official lineup on WWD.com. #wwdnews #wwdfashion (📷: @kukukuba)
BREAKING: Jonathan Saunders is leaving @DVF. The designer has resigned from his position as chief creative officer of Diane von Furstenberg, the company said in a statement on Friday. At the time of his hire, von Furstenberg said Saunders’ arrival symbolized and facilitated her stepping back from the day-to-day duties that occupy the work of a full-time creative director. The British designer joined DVF in May 2016 and was in charge of all product categories. #wwdnews
For @versace_official’s spring ad campaign, the brand emphasized the archival prints from the spring tribute collection dedicated to the late Gianni Versace. Closing out the show were five of Gianni’s favorite models: Cindy, Naomi, Carla, Helena, and Claudia. Bowing on December 18, the new campaign is yet another tribute to supermodel-dom as the images by Steven Meisel are fronted by @iamnaomicampbell, @cturlington, @gisele and more. #wwdfashion
Four-time Oscar-nominated actress Annette Bening has been waiting 20 years to play Gloria Graham in "Film Stars Don't Die in Liverpool," which will be released on December 29. The movie about Graham – a Hollywood star known for her controversial relationship with a younger Englishman named Peter Turner – is based off a memoir Turned wrote. "She felt vulnerable to him, because she loved him, she really did love him. And anyone that we really truly are in love with, we re vulnerable to in a very deep way," said Bening. Read our full interview with the modern icon of an actress on WWD.com. #wwdeye (📷: @ninebagatelles; Styled by @cristinaehrlich)
The crisp white button down: a staple that can be dressed up or down and accessorized throughout the decades. Here, on a Art Basel-goer in 2017 on the left and on the iconic Audrey Hepburn in “Roman Holiday” in 1953 on the right. #tbt #wwdfashion (📷: Andrew Morales)
Known for her work with @victoriassecret, 25-year-old model @georgiafowler is raising her profile in Hollywood. Fowler stars in @vincecamuto’s holiday campaign, which launched in partnership with “Pitch Perfect 3.” “Almost every shoot with Vince Camuto, I’ve had to face a fear…It was definitely a challenge. I’m so grateful for it, though. I’ve always wanted to be a pop star, so that was the perfect chance,” Fowler said. Head to WWD.com to read about Fowler’s experience modeling, including at the #VSFashionShow, and her relationship with Nick Jonas. #wwdeye (📷: @jilliansollazzo)
EXCLUSIVE: Huda Kattan just became the first beauty influencer to land a major beauty deal. Kattan's business, @hudabeauty, has received a minority investment from private equity firm TSG Consumer Partners. The brand, which industry sources say is on track to do $200 million in retail sales for 2017, will receive support on product, retail and geographic expansion through the deal. Get all the details on the deal and read @_a_collins' interview with Kattan on WWD.com. Link in bio. (📷: @jgreenery) #wwdbeauty #wwdnews
Peruvian model @juanaburga_official – who is known for walking the runways of @rodarte, @viviennewestwood and @torybuch – is making the move to the big screen with drama “Los Últimos.” The film premiered in Argentina in November and arrives in the U.S. and Europe in 2018. On making the switch from modeling to acting, Burga told WWD: “It’s a completely different thing – a lot of people think it’s similar or try to connect things, especially like getting used to the camera or being looked at all the time or playing these different characrers, but film is a completely different story.” #wwdeye (📷: @jgreenery)
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)