Sunday, July 7, 2013

Chinese consumers boost Burberry

Burberry, which has hired actress Sienna Miller and her fianc? Tom Sturridge to be the new faces of the brand, is enjoying growing sales outside its core clothing division, with men in China driving a boom in male accessories.

The company, which was founded by Thomas Burberry in 1856, is also focusing on increasing the size of its fragrance and beauty division after terminating a licence agreement and bringing the business in-house in April. In a first-quarter trading update on Wednesday, the City is forecasting that Burberry will report a 5.5pc rise in retail like-for-like sales with revenue up to ?316m, compared with ?280m last year.

This increase in like-for-like sales would represent a slowdown on the 8pc in the last quarter. However, it would still be a robust performance from Burberry compared with its rivals and given the slowdown in China?s economy.

Erwan Rambourg, analyst at HSBC, said that Burberry has ?everything in its right place?.

He said: ?As sales in Asia, and more importantly sales to Asians, gradually gain relevance, we believe this will drive non-apparel, as well as menswear, further up.?

Source: http://telegraph.feedsportal.com/c/32726/f/568300/s/2e4dc128/l/0L0Stelegraph0O0Cfinance0Cnewsbysector0Cretailandconsumer0C10A1648410CChinese0Econsumers0Eboost0EBurberry0Bhtml/story01.htm

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