Morning:
8°c
The arrival of Harry Potter actress Emma Watson as the new face of Burberry has helped the fashion house to some magic numbers.
In the last three months sales at the company stores — including the landmark shop on Bond Street — are up 12%.
Watson joined the Burberry stable last month, featuring in ads for the luxury goods group that is still best known for its black and red checks.
Tourists in particular have been flocking to the store, taking advantage of the weakness in the pound.
But Watson was powerless to keep sales of Burberry goods up in other stores during the first quarter.
The wholesale arm saw sales slump 28% over the period to the end of June.
Finance chief Stacey Cartwright blamed these numbers on “wholescale destocking by customers” in a “challenging environment”.
Total sales are up 8% to £229 million.
The figures were better than many in the City expected, and analysts are betting on a strong recovery during the run-up to Christmas.
Morgan Stanley said in a note to investors: “The encouraging point is that like-for-like revenues were flat and ahead of expectations. This shows robust demand for the brand in a weak trading environment.”
Katharine Wynne at Investec said:“ Trends in the first quarter show continuing relative out-performance in retail, whereas licensing and wholesale revenues have been distorted to some extent by timing factors.”
Burberry says it is taking market share from rivals, especially in America.
Angela Ahrendts, the retailer's chief executive, said: “Burberry has made a solid start to the year.”
Overseas sales are patchy, with Spain a continuing problem.
Russia and parts of the Middle East were also difficult, but China “continues to perform strongly,” the company said.
It opened its first retail store in Bahrain earlier this year.
Reader views (3)
Agreed! They'd rather spend money on creating an 'image' whereas the reality is poor Chinese made garments that live on their past (glorious) reputation! Emma does look tasty though! I'll be looking out for her in 'ampstead wearing this!
- Michael Spencer, Toronto, Canada, 15/07/2009 17:28
Report abuse
stopped buying THIS brand when i started feeling embarrased about buying crap made in god knows where
and parading as 'British'when the price reflects the
quality and background i will go back.talk about taking people for a ride.even tourists can see it now.
- Serafim, london, 15/07/2009 11:13
Report abuse
Perhaps Burberry's customers want to buy quality British made items (which is a flag they band about liberally in their marketing) other than second rate items made in the Far East. Last 2 Burberry things we have bought we have taken back due to poor quality.
Serves them right!
- Hansel, London, 15/07/2009 09:46
Report abuse
