Burberry off to a good start in new financial year

Burberry off to a good start in new financial year

British chain Burberry has had a strong first quarter in the financial year 2013/2014. Sales in shops were 21 percent higher at the end of June than in the same period a year earlier. Especially in China sales of the spring and summer collection were going strong.

Rise twice as big as predicted

Between early April and the end of June Burberry had sales of 339 million pound (just under 400 million euro), 21 percent more than in the same period of 2012, when sales were at 280 million pound. On a comparable basis there still was a rise of 13 percent: a lot more than the 8 percent of the last quarter from the previous financial year and more than double than was predicted by financial analysts.

 

The results are a lot better than expected: early May Burberry had even said profits for the first six months would be lower than in the previous year. Burberry is however very successful in China, where sales also had a double-digit growth.

 

Cautious about rest of financial year

Burberry is remaining cautious about the rest of the financial year. For the retail department the company is foreseeing a growth of five percent, but for wholesale the prospects for the first six months are bleaker. For the period until the end of September the company is predicting a drop of ten percent. Last year sales were at 253 million pound for the first six months.

 

The company wants to use the high sales to steadily increase the operational margins. Last year they were at 17.1 percent. 

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top