Handbags give Burberry a sales boost

Demand for luxury branded handbags and accessories helped lift Burberry’s sales growth into double digits, the group said today.

The retailer, famous for its hallmark plaid fabric, reported retail sales -accounting for 70% of its total revenue – up 13% on a comparable store basis.

Burberry said the retail boost was driven by “excellent demand” for its new handbags, alongside a number of updated styles.

One of Burberry’s best sellers in the past year has been its £750 (€1,138) Manor Handbag, which was carried by model Kate Moss in a high profile advertising campaign which also featured fellow Burberry model Stella Tennant.

It said today that total revenues increased 25% on an underlying basis.

The group continued its international expansion during the quarter ended December 31, opening stores in California, Vienna in Austria, five concessions and one outlet store.

Burberry plans to open a further four stores in the fourth quarter of its financial year, in Manchester, Seville in Spain, Prague in the Czech Republic, and an outlet.

Recently-appointed Burberry chief executive Angela Ahrendts said: “This outstanding quarter has been led by Burberry’s strong retail performance.

“These results are a credit to the extended efforts of the team in executing our core strategies, specifically in innovating outwear, intensifying the luxury accessory offering and implementing operational enhancements.”