Burberry leather handbags are paving way for growth

Worldwide
Published:  11 July, 2018

In a first quarter trading update, the British fashion label says it has achieved a solid performance in retail in a period of transition, with comparable sales up +3%.

Burberry’s strategy of investing in key markets, including relocating and expanding a flagship store in Dubai and closing an additional two outlets, were part of the Company’s highlights in the period, as well as the vertical acquisition of a supplier. Read more here.

The British label’s retail revenue in the 13 weeks to June 30, 2018, increased from £478 million (US$633.27 million) in the comparable period of 2017 to £479 million (US$634.52 million). According to Burberry, growth was led by local and returning top customers, with newly launched handbags, such as the Belt and D-ring, performing well as a “positive early sign” for the transformation of its leather offer.

The Company says it is on track to deliver cumulative cost savings of £100 million (US$132.49 million) in 2019.