Burberry profits boosted by China demand

Luxury goods retailer Burberry saw its retail revenues boosted 13 per cent in its second-half year results today, thanks to strong growth from China.

Retail revenue rose to £840m for the six months ended 31 March 2013, with double digit store sales growth in China and Hong Kong.

Wholesale revenue fell three per cent to £220m due to weak demand in the European market.

The company plans to open more stores in China this year to capitalise on the country’s growing demand for luxury goods.

“With three-quarters of our revenue now generated in retail, we are pleased with the 13 per cent growth in this channel in the second half, driven by continued innovation in product, marketing and customer service, especially over Christmas and Chinese New Year,” said chief executive Angela Ahrendts.

“Looking forward, while we expect the external global environment to remain challenging, the team is intensely focused on optimising the significant opportunities that exist for the brand across geographies and product divisions, with particular emphasis on unlocking the potential of our digital platform and our newly-integrated fragrance and beauty business.”