Retail sales at upmarket fashion brand Burberry rocketed 24 per cent on an underlying basis for the third quarter ending 31 December, which was in line with forecasts.
Underlying total revenue increased 25 per cent, with retail sales accounting for about 70 per cent of the total.
Retail performance was consistently strong across all regions, with the UK market continuing to achieve double-digit gains on the strength of existing space. In the US, existing stores and new store space drove strong sales, with the Asia Pacific division also reporting robust growth.
According to the company, outstanding outerwear performance drove sales, with new luxury handbag styles and Burberry’s runway collection in huge demand.
Burberry chief executive Angela Ahrendts said: “This outstanding quarter has been led by Burberry’s strong retail performance. These results are a credit to the extended efforts of the team in executing our core strategies, specifically in innovating outerwear, intensifying the luxury accessory offering and implementing operational enhancements. This performance is consistent with expectations for the financial year.”
Wholesale revenue also rose 33 per cent (underlying), 22 per cent (reported), from the first half to the third quarter, driven by a shift in shipment timings.
Burberry plans to open stores in Manchester and Seville in Spain, as well as launch a new concept store and an outlet in Prague during the fourth quarter.
Burberry is set to close its factory in Treorchy, Wales, at the end of March, amid ongoing protests by workers, celebrities and politicians. A GMB spokesman said the workers feel “angry, let down and frustrated” on hearing the brand’s outstanding trading results.
The union will now be intensifying its campaign over the next month, with demonstrations planned outside Burberry’s flagship stores in London, New York, Paris and Rome, according to the GMB.