- Prachi Singh |
At 604 million pounds (915.8 million dollars), Burberry’s retail revenue in the third quarter increased by 15 percent underlying and 14 percent at reported FX. Comparable sales growth was 8 percent.
By region, there was double-digit percentage comparable sales growth in the Americas and EMEIA. Asia Pacific delivered low single-digit percentage growth, primarily reflecting the disruption in Hong Kong, a high margin market, where comparable sales fell slightly in the period. Mainland China and Korea grew by a mid to high single-digit percentage. Digital again outperformed in all regions.
Commenting on the third quarter results, Christopher Bailey, Chief Creative and Executive Officer, said, “15 percent underlying growth in retail sales reflects our commitment to every element of the customer experience, from product, to marketing, to service. Looking ahead, we will bring equal focus to maximising the opportunities of the final quarter, including Lunar New Year, while being mindful of what remains a challenging external environment.”
By product, the relaunch of heritage rainwear and cashmere scarves drove strong growth, reflecting the intensified focus in these core categories, across design, marketing, merchandising and in-store execution. In fashion, runway-inspired ponchos saw exceptional performance.
During the third quarter, the company opened five mainline stores and closed four. Openings included relocations in Beverly Hills and Tokyo, as well as second dedicated beauty store globally, in Seoul, South Korea. Two additional concessions were opened in Japan, ahead of the licence expiry later in 2015.
In FY 2015, net new space is now expected to contribute about 5 percent to total retail revenue growth. Excluding Beauty, the company still expects wholesale revenue at constant exchange rates to be down by a mid-single-digit percentage in the six months to March 31, 2015, with a more cautious approach from wholesale customers selling to the European consumer and in Asian travel retail markets. For Beauty, wholesale revenue is expected to grow by about 25 percent at constant exchange rates in FY 2015.