Sunday, November 21, 2010

Burberry touted a strong performance in Asia

Burberry touted a strong performance in Asia and barnstorming sales of its leather aviator jackets for driving record half-year profits yesterday.

The luxury group also hailed the contribution of a 26 per cent surge in non-apparel sales, with the star performer being its leather handbags, to pre-tax profits surging by 49 per cent to £118m.

Angela Ahrendts, the chief executive of Burberry, said: "The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns."

Total revenues at Burberry, which has retail, wholesale and licensing divisions, rocketed by 21 per cent to £641m over the six months to 30 September.

Ms Ahrendts, who has been feted for her turnaround at Burberry, cited an impressive performance in China where it acquired in September 43 of the 50 stores that were previously operated by its franchise partners. Sales at the new company-owned stores jumped by 25 per cent in the half-year. Burberry expects to transfer over the seven remaining franchise stores over the coming months.

Sales across its emerging markets division accounted for 13 per cent of total sales in the first half, up from 11 per cent last year, with Turkey also making a strong contribution.

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