LONDON — Handbags and leather goods with variations on Burberry’s signature check fueled first-quarter revenue at the company, which posted an overall 30.6 percent sales jump along with double-digit increases in all distribution channels and regions, excluding Spain.
Burberry said Tuesday that sales rose to 282 million pounds, or $420.2 million, from 216 million pounds, or $321.8 million, in the three months ended June 30.
Figures have been calculated at average exchange rates for the quarter.
The revenue figure does not include Burberry’s Spanish operations, which are to be discontinued as of the fall season. Beginning with spring 2011, Burberry will sell its global collection, rather than the locally produced one, in Spain. Including Spanish operations, sales in the three-month period would have increased 27.1 percent to 291 million pounds, or $433.6 million, from 229 million pounds, or $341.2 million.
Chief financial officer Stacey Cartwright acknowledged in an interview that figures in the corresponding period last year were weak — revenue grew 8 percent as clients reduced inventories and the company was still in the heat of the downturn. But she described the 30.6 percent sales upswing as “high-quality” growth.
“There’s a momentum in the brand: Comparable-store sales [which does not include growth from newly opened stores] were up 10 percent in the period, and we are outperforming our U.S. department stores,” she said.
Top performers in the period included Burberry stores in the U.K., Italy, Germany, Hong Kong, and Taiwan. Burberry said store sales in the Americas grew in the low-single digits, as sales activity was significantly reduced for much of the quarter.
Chief executive officer Angela Ahrendts said in Tuesday’s statement the company plans to open 20 to 30 stores in the current fiscal year, predominantly in the Americas and the Asia-Pacific region.
Retail sales rose 21 percent, wholesale by 51 percent and licensing by 36 percent in the period. Cartwright said the improved timing of deliveries, monthly flow of goods and supply chain efficiencies contributed to the increase in wholesale sales, in particular.
The revenue figures beat the market consensus of 263 million pounds, or $391.8 million, and Citigroup’s projection of 259 million pounds, or $385.9 million.
“Sales growth in [Burberry’s] retail division was stronger than expected in Europe and Asia-Pacific. Of the 16 percent growth in retail sales, new space accounted for 6 percent, and comparable-store sales growth for 10 percent. This was despite less promotional activity, which bodes well for margins,” said Dennis Weber of Evolution in a report on Tuesday.
Cartwright said the big driver behind sales were large leather goods and handbags, which account for half of all nonapparel sales, and in particular the Haymarket, Nova, and Smoke check models.
Donatella Versace will receive the International Award at the 2018 @cfda awards, which were announced tonight. Tap link in bio for a list of all the nominees and honorees. #wwdnews #wwdfashion (📷: @rahirezvanistudio )
The 2018 @cfda Awards nominees are out! @virgilabloh for @off____white for is nominated for Womenswear Designer of the Year. Tap link in bio for all the nominees. #wwdnews #wwdfashion ( 📷: @simonelezzi)
@chanelofficial is suing high-end vintage retailer @whatgoesaroundnyc for trademark infringement, a move that could cost the retailer millions. The French fashion house claims that it’s not only unintentionally sold counterfeit goods on occasion, but that it’s “gone out of its way to create an association with Chanel,” which does not exist. Read Chanel’s statement on WWD.com #wwdnews (@aitorrosasphoto)
Exclusive: Guillaume Henry has left @ninaricci, the fashion house said on Thursday. “After three years of mutually gratifying creative collaboration, Nina Ricci and Guillaume Henry have together decided that the designer will depart the house after the presentation of the fall-winter 2018-19 collection,” Ricci said in a statement. Get all the details on WWD.com #wwdfashion (📷: @aitorrosasphoto)
“When Bella enters a room all heads turn,” said @peterphilipsmakeup, creative and image director for @diormakeup. Last night, the two celebrated the product launch of Dior’s Lacquer Plump in Los Angeles with other celebs like @parisjackson, @winnieharlow and more. Head to WWD.com to see the rest of the photos from the night (📷: @chelsealaurenla) #wwdeye
“These shirts are an art form, it’s about getting the message out to as many people as you can. It breaks down the pretentiousness of the art gallery,” says Kumasi Sadiki, cofounder of @ebayontheblock, a store that sells merchandise by New York artists who are shifting their attention to clothes as a wearable medium. Pictured here is a design by artist @joegarvey_, one of the first to spearhead this movement. Head to WWD.com to read @mistywhitesidell full story on how their designs have become merch for the underground elite #wwdfashion
@netaporter is dedicating a part of its website – called the Fine Jewelry and Watch Destination – to highlight its high-end jewelry. The hub will feature products on the site, as well as incorporate styling advice and educational content about high-priced jewelry items. Get more details on WWD.com. #wwdaccessories
For “The Cher Show,” an upcoming musical based on @cher’s life and career, @bobmackie is once again collaborating with the singer in designing the costumes. For decades, Mackie has designed glitzy stage costumes and red carpet looks for the 71-year-old Grammy winner. Pictured here is a sketch of some of the pieces in the wardrobe of the musical, which is set to debut in Chicago on June 12 before making its way to Broadway #wwdeye