LUXURY goods firm Burberry posted a big jump in retail sales today after seeing strong demand for accessories and outerwear.
Fresh from a 23% jump in profits to £215 million for the last financial year, Burberry said revenues were up by a better-than-expected 24% in the first quarter to June 30. Shares rose more than 2% today.
Sales in its stores were ahead 16% on an underlying basis and included another strong performance from the company’s outlets in the UK.
Burberry said items such as handbags and other non-apparel items were its strongest performing area of business, while outerwear also did well.
The company has introduced a pricing policy which has ensured that heritage products such as rainwear and cashmere scarves were never marked down.
It has also brought greater clarity to its offering through the labelling of Burberry London as its wear to work range and Burberry Brit as casualwear.
And a larger proportion of its marketing spend has been shifted online, boosting awareness and the reach of the Burberry brand.
It has more than one million Facebook followers and its social media site, artofthetrench.com, has received more than several million page views since its launch in November.
The company’s plans for the current financial year include an increase in capital expenditure to £130 million from the £70 million spent last year.
This will feature between 20 and 30 new stores in areas such as the Americas and Asia Pacific, as well as store refurbishments and investment in digital commerce.
It has also sought to "purify" the Burberry brand by closing inappropriate wholesale accounts.