Burberry may have experienced weaker sales in the U.S. market, but any losses were more than covered by growth in its markets in China and Europe. The luxury fashion house, with faces including model-actress Rosie Huntington-Whitely, recently announced 21% increase in revenue in both regions.
The American market’s growth slowed, growing only 4% despite Burberry’s streamlined operation, but the line saw gains of 36% and 20% in Asia and Europe. Paris and Sao Paulo are some of the company’s strongest bases, and Brazil is growing in importance as well.
Chief financial officer Stacey Cartwright said “We are very pleased. We think it was a strong performance during a key period. Softer markets were southern Europe and Korea. We are now up against very strong competition and the comparables are growing more difficult to beat each period but we are pleased with the performance.”
UBS analysts have explained the struggling growth in the U.S. market: “The low number was due to planned rationalizations of wholesale channels, and comparable mainline store sales growth was in the high single digits, with good growth momentum at key department store partners.”
Half of the fashion line’s global growth was triggered by sales of coats and leather bags. Other key products include knitwear, men’s accessories and aftershave.
The positive sales figures imply that Burberry’s strategy to avoid financial crises has been successful thus far. The company is focusing on flagship markets in cities like Paris, and plans to build its largest store on Regent Street before the Olympics as well.
CEO Angela Ahrendts said “Looking ahead, we remain focused on executing our proven core strategies to achieve long-term sustainable growth, while staying mindful of the challenging macro environment.”