The British luxury ready-to-wear brand Burberry, renowned for its iconic beige trench coats, announced in January a 14% increase of its profits.
Burberry’s new record
Whilst 2013 was a difficult year for many of the luxury sector, the economic performances of the British brand surprise and delight.
Thanks to year 2013/2014’s third trimester, Burberry saw a 14% increase in its profits and a turnover exceeding 2 million pounds.
The fashion brand is living a dizzying ascent, realising its most important turnover since 2009.
The brand’s ascent delighted its investors, the Burberry title having increased by 5% on the London stock exchange. As a consequence, the brand’s success had positive repercussions on other fashion brands such as LVMH or Kering.
The reasons behind this record
Burberry’s formidable turnover was in majority due to its important number of points of sale in China and the increase of its online sales.
Major growth enhancer in the luxury sector, China is one of the factors which contributed to Burberry’s increase in sales. The group declared that its luxury ready-to-wear collections for men and women, fashion accessories and its iconic trench coats are the leading sales.
Furthermore, the brand’s financial director, Carol Fairweather, explained that the brand’s online strategy was mostly devoted to its Chinese consumers, 20 to 25 years younger than its other clients across the world. She underlined that the company was amongst one of the first in the luxury sector to display its collections online. Hence, the brand had already affirmed its place on social networks before the competition.
Frééric Rozier, economic specialist, asserts that even though Burberry’s growth is not as important as the one it knew in 2010/2011, it allows it to start the year with solid foundations.