Luxury retailer Burberry (LSE: BRBY) has given us more proof that retail isn’t dead!
Perhaps surprising the market, Burberry reported that retail sales for the first three months were up 18%, at £339m, driven by a great response to Burberry’s Spring/Summer 2013 fashion lines.
Online and offline sales were strong, as the company said same-store sales, those driven by stores open for more than a year, was up 13% and in line with their expectations.
This quarter, Burberry also launched Burberry Kisses — in partnership with Google — and opened seven mainland stores, including two in their Shanghai flagship market.
Angela Ahrendts, Burberry’s chief executive officer, commented:
“We are pleased with our first quarter retail performance. Spring/Summer 2013 was a standout season driven by innovative marketing, cohesive monthly fashion groups and exceptional execution from all corporate and regional teams.”
Burberry is expanding its distribution and offerings beyond apparel to target demand for its brand in buoyant economies such as Asia. For the coming year, Burberry said it will continue to open markets where it’s seeing strong consumer demand, namely China and Latin America. The new openings should contribute to Burberry’s revenue growth, and if the company can get some like-for-like sales growth out of existing stores, Burberry shareholders should be pleased.
The maker of the legendary raincoats started operating its own fragrance and beauty division in April of this year, which could be yet another way for Burberry to grow revenues in the next year or two.
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> Jill owns shares of Burberry. The Motley Fool has recommended shares in Burberry.
