Burberry has reported a 21% rise in group sales for the three months to 31 decever 2011. Retail sales were up 23% and 13% on a like-for-like basis. Simon Chinn, Lead Consultant at Conlumino, comments:

“These are a solid set of results from Burberry. Despite European consumers being under pressure from the ongoing travails of the eurozone crisis, sales in the region were propped up by high spending emerging market tourists, who appear to have an insatiable demand for high end luxury goods, which are on many occasions cheaper to purchase in Europe than in their home countries, and come with the added prestige of being foreign purchase.

“Burberry is a well sort after by the high spending Chinese consumer. As luxury retailers across the globe continue to see increased spend from the increasingly travelling Chinese consumer, Burberry is well positioned to capitalise on the so called ‘peking pound’ phenomenom from its flagship base to London.

“In the world of global luxury fashion, Burberry stands ahead of the pack in terms of its embracement of new social media tools to drum up demand and appetite for its latest designs. As an example it recently displayed its latest catwalk images on a Twitter ‘Tweetwalk’. With over 10 million facebook fans and growing demand for its products from the next generation of high spending tech savvy luxury tourists, Burberry’s brand momentum is only likely to grow stronger.” 

Source: Conlumino 17/01/2011