Burberry sales rise 15%, beats Street
London U.K. luxury goods retailer Burberry said Tuesday that it experienced a 15% rise in sales for its fiscal third quarter.
Results surpassed analyst estimates, and the company said it now expects pretax profit for the year will reach the top end-of-market expectations.
The retailer and manufacturer said total sales rose to 380 million pounds ($624 million) in the third quarter ending Dec. 31, against sales of 329 million pounds in the year-ago period. On an underlying basis that strips out currency and other items affecting comparability, that’s a rise of 12%.
Burberry reported a 17% rise in retail sales and a 10% gain in same-store sales growth, noting good performances from outerwear and non-apparel, while digital media initiatives helped drive traffic.
There was strong growth across all regions for Burberry, with retail/wholesale revenue for Europe up 18% and Asia Pacific up 20%. Wholesale sales rose 11% in the period while licensing revenue rose 22%.
The company opened five mainline stores, including flagships in Tokyo and Burberry London and Burberry Brit stores in New York, along with six franchise stores in emerging markets.
New additions to beauty
This March, the beauty department at Target is set to receive new items from such boutique brands as NP Set and Pixi. The new launches are designed to fulfill the retailer’s “expect more” value proposition. Target will add five new products from the NP Set brand including a $32 NP Set Romance Set with 26 colors, including 18 eye shadows, four blushes and four lip glosses, a $15 mascara, a $15 eye primer, a $17 compact kit called Pretty Presto and a $13 item called the NP Set On the Double Pens.
Under the Pixi brand, new items will include an $18 Smokey Eye Primer, a $14 Endless Silky Eye Pen, a $28 Flawless & Poreless cleanser and a $25 Lumi Luxe Bronzer Palette.
Borders sees decrease in holiday sales
ANN ARBOR, Mich. Borders Group reported that for the 11-week holiday period ended Jan. 16 total consolidated sales were $846.8 million, a 13.7% decrease compared with the same period last year.
Within the Borders superstore segment, total sales for the period were $649.2 million, a 14.7% decrease from a year ago. Comparable-store sales at Borders superstores declined 14.6%. Factoring out multimedia, comparable-store sales at Borders superstores declined 10.9%.
Within the Waldenbooks Specialty Retail segment, total sales for the holiday period were $153.2 million, a 14.6% decrease year-over-year. Comparable-store sales for Waldenbooks stores that will remain open beyond the end of this month declined 9.4%.
“We are disappointed with holiday results and must intensify our focus on creating and delivering a shopping experience that drives profitable sales,” said Borders Group CEO Ron Marshall. “Given the sales challenge, we have continued to manage cash flow and have taken several important steps in line with our strategic priorities, including moving away from underperforming, low margin categories such as music and video in favor of better performing categories such as children’s.”