Retail in Asia


Burberry sales boosted by China

Burberry sales boosted by China news - Retail in Asia

Britain’s Burberry reported an increase in sales in the three months ending June, on the back of double-digit percentage sales growth China and positive demand APAC-wide.

Total retail sales generated £478m in the three-month period, the London-based brand said, helped by strong performances in the UK and mainland China.

The luxury fashion retailer said for the first quarter of the 2017-18 year, comparable sales increased 4%. In China, sales growth was in the “mid-teens”.

Underlying sales rose by about 15% in mainland China as the chief operating and financial officer, Julie Brown, said “Chinese consumer confidence continued to build.”

Brown said there had also been a rise in Chinese shoppers heading to Hong Kong, after a long period of decline.

Being the first set of results to be reported under chief executive, Marco Gobetti, the new Burberry head praised the brand’s former-CEO, Christopher Bailey, for his efforts, after he was returned to perform the sole role of creative director for the brand.

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“We are pleased with our performance in the first quarter, while mindful of the work still to do,” said chief executive Marco Gobbetti.

“This is a time of great change for Burberry and the wider luxury industry. I look forward to building on the foundations Christopher and the team have put in place and creating new energy to drive growth.”

Luxury leather goods and a new lightweight version of the classic trenchcoat, designed for tropical climates, led the growth. Burberry’s backpacks were the best seller, overtaking the Banner bag, it said.

The company said it wants to save at least £100m by 2019 and said it is on track to deliver £50m in savings in 2018.

This recent rise in sales comes after Burberry reported a fall in annual profits for the 2016-17 year.