British luxury brand Burberry has continued to defy wider economic issues posting an 11% rise in revenues for its first quarter as menswear continued to excel.
In the three months to June 30, total revenue rose 11% to £408m. Retail revenue rose 14% to £280m, with like-for-like store sales growing by 6%.
Burberry’s wholesale arm also saw growth as revenue rose 9% to £102m with the division benefitting from earlier deliveries.
Growth across the business was helped by strong sales of men’s tailoring and accessories. Across its mainline stores there was an increase in average selling prices, which was driven by product innovation and a higher penetration of Burberry Prorsum.
Burberry also rationalised opening price points across its core outerwear and accessories as it moved production away from Asia into Europe and upped quality of fabric.
Burberry also revealed its new flagship store on London’s Regent Street is set for a September launch. Chief financial officer Stacey Cartwright could not provide an exact date for the opening but said: “We are very excited about it. It’s going to be magnificent.”
Chief executive officer Angela Ahrendts said the first quarter was “robust” in a more challenging external environment. She added: “Sales in retail, now about 70% of the business, increased by 14%, with initiatives to elevate brand equity balanced by improved store productivity and new space.
“Building on our balanced business model and strong operational foundation, we continue to invest in our retail, digital and marketing strategies to drive long-term sustainable growth, while remaining responsive to the changing external environment.”