The retailer, which is prioritising retail-led growth over wholesale and licensing agreements, will open shops in Budapest, Florence, Copenhagen and the Beverly Center in Los Angeles in its second half. The moves comes as Burberry reveals that retail sales, which account for 45 per cent of total revenue, rocketed 25 per cent on an underlying basis to£202 million in the first half to September 30. Group revenue jumped 19 per cent to£449 million.
Wholesale growth slowed to 16 per cent and licensing income advanced 5 per cent.
Performance was helped by accessories and the retailer is driving sales in nine non-apparel lines, including belts and shoes. Outerwear was strong, with autumn/winter collections helping to lift like-for-likes 11 per cent.
Burberry will increase its average selling space by 12 per cent year on year in the remainder of the year – the same amount as during the first half, when it opened a total of 11 stores, 13 concessions and two outlets across the US, Asia and Italy.
The retailer ramped up store openings in the US, where revenues shot up 29 per cent, to improve its US market share.
A spokesman said: “Burberry believes it has got a 2.7 per cent penetration of the global luxury market, but in the US, it is only around half of that.”
Revenues at the Spanish retail and wholesale division remained flat and were expected to weaken because of the erosion of multi-brand accounts.
Panmure Gordon retail analyst Christian Koefoed-Nielsen said: “It does look as if Burberry is hitting the spot with high-end consumers and we believe there is considerable trading momentum behind the business in what is proving to be a tough environment for more middle-market operators.”
The retailer will spend£4 million more than planned this year on improving computer systems. The total cost will remain at£50 million over three years and will deliver£20 million profit in this financial year.
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