.The UK luxury brand said net profit climbed to $185.6 million for the
six months to September 30, with revenue rising 29% to $1.3 billion .
.The company reported 45% underlying growth in retail sales, which now
account for 64% of revenue, up from 57% last year. Comparable-store
sales rose 16%, thanks to new products, better replenishment, global
buying, and sales and service initiatives .
.Burberry is investing to build its growth in under-penetrated
markets, with North American wholesale revenues up 25% on an underlying
basis. This was driven by a strong performance in department stores,
where it opened some 16 concessions over the period .
.Emerging markets have also increased their share of revenues,
accounting for 19% of sales, up from 13% in the first half of the
previous year .
.“Burberry has delivered a strong first half, reflecting our continued
investment in innovative design, digital marketing and retail
strategies,” said CEO Angela Ahrendts .
.“This consistent performance, balanced across channels, regions and
product divisions, is enabled by our closely connected global teams and
creative thinking culture .
.“As we begin to see initial returns from five years of infrastructure
investments, we are confident that this solid foundation will enable us
to optimize both our strong brand momentum and the luxury sector’s
opportunities, especially in high-growth flagship and emerging markets.” .
.Luxury goods firms have represented a rare and surprising success
story in a year dogged by euro-zone weakness, says Jon Copestake, retail
industry analyst at the Economist Intelligence Unit (EIU) .
.“Burberry is joined by exclusive brand stables like PPR and LVMH in
performing strongly,” he notes. “Aggressive expansion in emerging
markets, particularly China and India has paid off handsomely. .
.“Overall annual retail sales in China grew 17.2% in October and the
EIU is forecasting a five-fold increase in the number of households
earning over US$50,000 between 2010 and 2015 .
.“That said, fears over a Chinese slowdown hit confidence in Burberry
hard earlier this year, and over-reliance here could leave them exposed
if spending eases.” .
Date:11/16/2011
Source:www.just-style.com