The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Burberry Group Plc, the U.K.'s largest luxury-goods maker, reiterated its forecasts for the year after sales of its spring-summer collection lifted first- quarter retail revenue more than analysts estimated.
Retail revenue advanced 21 percent to 339 million pounds ($504.7 million) in the three months ended June 30, London-based Burberry said today. Analysts predicted 316 million pounds based on the median of nine estimates compiled by Bloomberg News. Excluding currency shifts, revenue gained 18 percent, while same-store sales increased 13 percent. Analysts had expected a 5 percent boost to same-store revenue.
Burberry is widening its retail distribution and expanding its offer beyond apparel to target demand for its brand in buoyant economies such as Asia. The maker of $2,795 raincoats, which began operating its own fragrance and beauty division in April, expects new stores to boost retail revenue by a low-to- mid single-digit percentage in fiscal 2014, it said today, repeating a May forecast.
"Spring/summer 2013 was a standout season," Burberry Chief Executive Officer Angela Ahrendts said in the statement. "The macro outlook remains uncertain and we will continue to focus our investment on profitable high-growth opportunities by channel, region and product categories."
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Global luxury sales will rise 4 percent to 5 percent this year, excluding currency shifts, Bain & Co. estimated in May. Growth will be sustained as booming demand in southeast Asia offsets a slowdown in China and Europe, according to the consultant.
By: Andrew Roberts; Editors: Celeste Perri, Thomas Mulier
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
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