Second quarter revenue growth of 1% of the market, rose 8% of the respondents in Hong Kong, France and Germany have maintained strong results, while the UK and Mainland China slowdown
Moneyweek trainee reporter Wang berry / text
This summer on Burberry outlet 2013 , is indeed a severe test, warning issued by zero growth in same-store sales in July and August, Zeng Burberry stock plunged 21%.
Shrouded in the haze of the deteriorating global economy, the gold nine silver ten, no which luxury brand dare to unashamedly sketch straight upward curve of Burberry, even if the second quarter (three months ended September 30) is a 1% growth are trimmed with the dawn of Phnom Penh. October 11 semiannual officially released to Burberry slightly relieved, more inspiring, rose after the opening of the stock at the date of 8% from the market’s confidence.
Slow down the pace of the mainland market, Hong Kong is still strong
Burberry released the first half of 2012 Annual Report: revenue growth of 8% in real terms in the first half. Retail revenues increased 10%, the wholesale revenue growth of 5%, franchise revenue decreased 5%, were in line with expectations. In the six-month period ended September 30, 2012, it is expected that the retail / wholesale operating margin will be at least flat with the same period last year (14.9%), and not declined as expected.
The reason for the second quarter of Burberry decline in performance, the semi-annual report will primarily due to a decline in passenger traffic. Lipo Song “and” London “penetration grew 6% the mainline stores full price sales rate increased. The strong soft accessories, men’s non-performance of clothing and tailoring Series store replenishment maintained in about half of the main source of income.
From the Retail geographical terms, the Asia-Pacific market contributed to a slight increase in comparable store sales, while comparable store sales in the Americas and Europe in the second quarter year-on-year remain unchanged. Compared to the first quarter, Hong Kong, France and Germany have maintained strong results, while the slowdown in the United Kingdom and China. South Korea and Italy, the performance is still poor.
Economic slowdown in the bad news does not stop Burberry pace of expansion, it will bet on the huge potential of the Asia-Pacific and European markets. According to statistics, in the first half Burberry 2013 , newly opened 13 mainline stores, a 12% increase in average retail area. The major new stores in the flagship market, including Burberry largest brand most creative places Regent Street, London, Hong Kong, Pacific Place, as well as Italy’s Milan and Rome.
Face retail sales growth of 1% of the dawn of Burberry CEO Angela Ahrendts remains optimistic, she said: “compared with the prior year performance record, Burberry total revenue in the first half of this year, and retail revenues were up 8% and 10%, but the second quarter growth slowed traffic decline in the more challenging external environment, but the brand momentum remains strong, especially the amount of consumption of luxury consumers increased. ”
Perfume and beauty business will be reverted to the Direct
Despite the uncertainty of market prospects, but the blueprint for the future of Burberry, Angela Ahrendts ambitious. Released semi-annual report of the day, Burberry also separately announced reverted Direct perfumes and beauty products. For this reason, Burberry will be paid on December 31, to 181 million euros in cash Interparfums company to terminate the franchise relationship with them.
For this initiative, Angela Ahrendts confidence in full: “reverted to the perfume and beauty products Direct initiatives in line with the Burberry strengthen overall brand control strategy. Important growth opportunities before us, with our infrastructure as well as the current the infrastructure of the major suppliers and distributors, we are able to gradually accelerate the growth of this business. established for Burberry’s fifth largest product sector is an exciting news for us, the perfume and beauty products, which will allow the perfume closer to our core business and brand positioning and beauty of these two product categories. ”
Direct, perfume and beauty will become the fifth largest product sector of Burberry, side by side with the accessories, women’s, men’s and children’s clothing department. Burberry perfumes and beauty business has begun to dominate all product design, packaging and marketing activities. In order to successfully complete the franchise relationship between transition, Burberry Interparfums of companies will be postponed to March 31, 2013. Burberry Direct mode will be officially launched on April 1 next year.
Burberry’s new planning
Angela Ahrendts seemed not satisfied with the rate of expansion of Burberry’s 12% average annual increase in retail space obviously can not satisfy her appetite for global expansion.
: In the retail market, the second half of the 2012/13 fiscal year the Burberry average retail space is scheduled to increase by 14%, according to the latest released semi-annual report shows. The company will set up shop in Chicago, Shanghai flagship market, in addition to creation of a separate men’s store in London’s Knightsbridge (Knightsbridge), and plans to open more stores in Brazil, Mexico and the Middle East.
The wholesale business is expected to appear more moderate in the second half, the actual wholesale revenue in the second half of the 2012/13 fiscal year, year-on-year to basically the same. Although consumption have become increasingly wary of global customers, but the United States, Asia travel retail and emerging markets is expected to continue to grow, and on the other hand, a small special wholesale customers to further reduce, especially in the markets of Southern Europe, offset by growth in other markets.
Burberry windbreaker famous in the second half of the year will undoubtedly usher in a sales season With this sale of hot air, Burberry, franchise revenue for the 2012/13 fiscal year, calculated at constant exchange rates and accounting rate is expected to reverse the decline decline year-on-year remained largely unchanged.
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