Strong Q3 growth for Burberry

United Kingdom
Published:  15 January, 2015

Burberry, the UK luxury fashion brand, has reported a strong rise in sales over the Christmas period. Revenue rose 14% to £604 million ($920 million) for the third quarter to December 31 2014, the company said.

A 12% rise in comparable sales was "in line with our expectations", said Chief Executive Angela Ahrendts, who is leaving to join Apple this year. Burberry is famous for its red, black and camel checked patterns and high-end leather goods.

Ahrendts warned that exchange rates could prove "a significant headwind in the second half and beyond".

Shoppers were increasingly buying online and making use of its "click-and-collect" service, the company said. As a result Burberry's digital channel "outperformed" expectations.

Outerwear, such as its trademark raincoats, and large leather goods contributed about half of the growth, it said, while men's accessories and tailoring "grew strongly". Burberry opened five new stores in the period, including two in China and the first Burberry Beauty Box in Covent Garden, London.

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.

Its shares are up nearly 13% over the past year.

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