China helps power Burberry quarterly sales up 5 per cent
In this article (5)
Burberry quarterly sales have jumped by a solid 5 per cent, largely buoyed by a doubling of turnover in China.
Greater China is a key market for Burberry, accounting for almost a quarter of total sales.
A social media campaign – including activity by Beijing blogger ‘Mr Bags’ – helped boost brand awareness and sales through the WeChat channel.
Globally, retail revenue rose 3 per cent to £478 million (US$613 million) and like-for-like store sales rose 4 per cent during the three months to June 30.
The figures impressed analysts, outperforming expectations and providing a welcome background to incoming CEO Marco Gobbetti’s first investor presentation today.
However, Bloomberg columnist Andrea Felsted urged caution, writing that Gobbetti “still has the task of reigniting interest in the tired brand”.
Questions & Answers
Q.Which specific market contributed most significantly to Burberry's recent sales increase?
Which specific market contributed most significantly to Burberry's recent sales increase?
Burberry's quarterly sales saw a substantial jump, largely due to a doubling of turnover in China. Greater China is a crucial market for the brand, making up almost a quarter of its total sales.
Q.What initiatives did Burberry undertake to boost its brand awareness and sales in China?
What initiatives did Burberry undertake to boost its brand awareness and sales in China?
The brand conducted a social media campaign in China, which included collaboration with Beijing blogger ‘Mr Bags’. This activity was instrumental in boosting brand awareness and sales via the WeChat channel.
Q.What is the new CEO's main challenge despite the positive quarterly results?
What is the new CEO's main challenge despite the positive quarterly results?
Incoming CEO Marco Gobbetti still faces the task of reinvigorating interest in the brand. A Bloomberg columnist noted that Gobbetti needs to address perceptions of the brand being 'tired'.
Q.What were Burberry's global retail revenue and like-for-like sales figures for the quarter?
What were Burberry's global retail revenue and like-for-like sales figures for the quarter?
Globally, Burberry's retail revenue increased by 3 per cent, reaching £478 million during the three months to June 30. Like-for-like store sales also rose by 4 per cent in the same period.