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Burberry sales climb on keen Chinese demand

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(Globalpost/GlobalPost)

British luxury clothing and accessories maker Burberry said on Wednesday that sales jumped nine percent in the second half of its financial year, boosted by keen Chinese demand for its products.

Total revenues climbed to £1.116 billion ($1.296 billion, 1.701 billion euros) in the six months to the end of March, compared with £1.027 billion in the same period of its previous fiscal year, Burberry said in a trading update.

Retail sales meanwhile soared 13 percent to £840 million in the reporting period, lead by the Asia Pacific region -- and especially China.

"With three-quarters of our revenue now generated in retail, we are pleased with the 13-percent growth in this channel in the second half, driven by continued innovation in product, marketing and customer service, especially over Christmas and Chinese New Year," said Burberry chief executive Angela Ahrendts in the update.

"Looking forward, while we expect the external global environment to remain challenging, the team is intensely focused on optimising the significant opportunities that exist for the brand across geographies and product divisions, with particular emphasis on unlocking the potential of our digital platform and our newly-integrated fragrance and beauty business."

In reaction, Burberry shares rallied 3.87 percent to 1,315 pence, bucking London's benchmark FTSE 100 index, which fell 0.49 percent in afternoon deals to 6,273.18 points.

Back in September, Burberry warned that its second-quarter earnings had been hit by an economic slowdown in key market China.

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http://www.globalpost.com/dispatch/news/afp/130417/burberry-sales-climb-keen-chinese-demand