British luxury brand Burberry saw revenue surge 18% over the last six months as like-for-like retail sales jumped 12% with the UK market helping drive growth.
For the six months to March 31 total revenue grew by 18% to £1.03bn.
Retail revenue grew by an underlying 23% to £743m with retail now making up 72% of group revenue. Like-for-like retail sales grew by 12% led by growth in the UK, France and Greater China. Knitwear, men’s tailoring and accessories grew strongly.
Wholesale revenue grew by 7% to £230m with double digit growth in the US, emerging markets and Asia. The brand highlighted the sales of core outerwear and large leather goods.
However wholesale growth was impacted by a move from wholesale to retail in both Spain and Saudi Arabia, plus further rationalisation of the brand’s distribution in Europe and the US.
During the period Burberry opened 11 mainline stores and closed six taking its total number of retail stores to 192. The company also has 208 concessions, 44 outlets and 57 franchise stores.
Over its next financial year, to 31 March 2013, Burberry plans a 12-14% increase in average retail selling space. The brand will focus on opening larger flagship stores and expects to open around 15 mainline stores including a new Regent Street store, scheduled to open in the summer.
Angela Ahrendts, chief executive officer, said: “With underlying revenue up 18% in the second half, we are pleased with Burberry’s finish to the year across all channels, regions and product divisions.”
She added: “Looking ahead, while we remain vigilant about the external environment, our global teams continue to focus on optimising our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth.”