BASINGSTOKE, England (Apr. 23, 2009)—Burberry released its financial results for the second half of the fiscal year ended March 31. Total revenues rose 2 percent, while retail sales, which accounted for nearly 60 percent of total revenue in the second half, jumped 14 percent. Non-apparel was the strongest product division driven by tighter, balanced assortments, product innovation and improved planning and replenishment processes. The new childrenswear initiative continued to perform well across all regions and channels.

Women's Check Wallet from Burberry

“Burberry made good progress in the second half,” says CEO Angela Ahrendts in a release. “Total revenue was strong, with 21 percent reported and 2 percent underlying growth. During the period, we intensified innovation in core outerwear and accessory categories, continued to improve inventory management and advanced execution of our cost efficiency program. Entering the New Year, we believe the Burberry brand and operations are well-positioned to capitalize on available opportunities, with the goal of delivering sustainable long-term growth.”

Same-store sales for the fourth quarter improved 3 percent, but showed a slight decrease of 0.5 percent for the back half of the year. The company showed strong growth in Europe and Asia, especially due to an increase of distribution in Spain and small European independent specialty stores. Though still challenging, the United States, Europe and Spain all performed better in Q4 than Q3. Korea and the United Kingdom had an exceptional performance, driven in part by favorable currency movements. Japan, however, remains a weak market for the luxury global brand.

In the second half, new space added nearly 11 percent to sales growth, with Burberry Middle East, a joint venture formed in September 2008, contributing 3 percent. Burberry opened 11 mainline stores, including Vancouver and Westfield, London and five trial childrenswear stores – two in the United States, two in the Middle East and one in Notting Hill, London. Excluding the stores now operated by the Burberry Middle East joint venture, there was a 13 percent year-on-year increase in average selling space, as planned.

Licensing revenue during the second half of the year dropped 13 percent, which was on par with company expectations.

  More Latest News Articles