Burberry reports 'outperforming' digital sales, while JD Sports' profits hit £100m
Burberry today said digital sales had “outperformed” once more, as it announced second-half revenue of £1.42bn, 9% up on the same time last year.
Retail sales of £1.06bn were 13% up, on an underlying basis, in the six months to March 31, compared to the same time last year. The upmarket multichannel fashion retailer said in a trading update
that growth was in the double digits in the Americas, Europe, Middle East, India and Africa, but in the low single digits in Asia Pacific. The Hong Kong market, it said, had shown “further deceleration”.
Wholesale revenues of £331m were unchanged, on an underlying basis.
Chief creative and chief executive officer Christopher Bailey welcomed a “robust” performance despite an uncertain economic environment.
“Total revenue grew by 9% underlying and 13% in retail, as customers responded strongly to product innovation, especially in our core British-made heritage trench coats and scarves, while we continued to invest in digital and retail initiatives, including flagship openings in Los Angeles and Japan,” he said.
“We anticipate external challenges will continue in the current year, but remain confident in our long-term strategy to build the Burberry brand and business globally."
Meanwhile, multichannel retailer JD Sports announced full-year sales of £1.5bn in the year to February 1
, up 25% on the same time last year. Pre-tax profits before one-off costs hit £100m for the first time, some 22% up on the same time last year; after exceptional items were discounted, bottom line pre-tax profits of £90.5m were 18% up on last time.
JD Sports said during the year ahead it would continue to bring invest in its stores. After introducing technology to its Trafford Centre, Manchester, store last year, it plans to do the same in its Oxford Street, London, store.
The company, which sells online through websites including JDSports.co.uk, Blacks.co.uk, and Millets.co.uk, and through 660 stores in the UK and Europe, said capital investment of £70.2m in its sports fashion business would stay high as the company continues to roll out overseas: the company currently has 70 JD and Size? stores in continental Europe.
“This result and its ingredients provide a robust platform for further profitable growth, at home and internationally,” said executive chairman Peter Cowgill.