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Burberry revenues rise 9% as shoppers snap up trench coats

Burberry’s revenues rose by an underlying 9% to £1.4bn in the second half of 2014, as customers lined up for its trench coats and scarves.

Retail revenue was up an underlying 13% to £1.1bn in the six months to March 31. Seven stores opened during the period, including two in the US and two in Japan, one of which was a relocation.

Wholesale revenue remained flat at £331m. Licensing revenue rose 3% to £33m. Burberry said it expects licensing to fall 40% during the next financial year, due to planned licence expiry in Japan.

Overall, like-for-like sales grew by 9%.

Chief creative and chief executive officer Christopher Bailey said: “We are pleased to report a robust second half performance, despite an uncertain external environment. 

“Customers responded strongly to product innovation, especially in our core British-made heritage trench coats and scarves, while we continued to invest in digital and retail initiatives, including flagship openings in Los Angeles and Japan.

“We anticipate external challenges will continue in the current year, but remain confident in our long-term strategy to build the Burberry brand and business globally.”

Burberry said digital “again outperformed in all regions”, but did not provide a breakdown.

Dan Wagner, founder and chief executive of ecommerce consultancy Powa Technologies, said: “Burberry has established itself as a leading innovator in fashion in recent years, with a strong focus on mixing online and offline channels through strategies like click-and-collect and digital orders in store via iPads.

“The strategy paid off last year, but the brand will need to invest further in its omnichannel strategy as online sales mature if it hopes to match its previous 14% revenue growth.

“The strong response to Burberry’s signature high-profile product launches reveals consumers are still hungry for the brand’s unique style, and it must now ensure it has the ability to engage its fans in innovative new ways if it is to keep its spot at the top.”

Readers' comments (1)

  • Burberry had some great Macs and the competition really didn't. These are classic offerings for Spring and Autumn temperature changes. The kind of item that has 2 opportunities to sell each year.

    I think they will feel the pressure as competitors improve. Our iPad / online solution for mass market fashion retailing (women and men) will accelerate this.

    However they do have a loyal customer base. If they maintain their quality, hopefully haemorrhaging won't be too drastic.

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