Burberry has seen their children’s trench coats and man bags demand increase as they smash sales forecasts. Their shares increased to a new high after they announced sales had increased 50% in the quarter to June 30, with almost 50% of that increase thanks to raincoats and leather bags as they could not keep the new lines on the shelves.
The 155 year old firm said new lines in men’s tailoring, men’s accessories, children’s wear and shoes had also helped to increase their wholesale division. The group saw sales increase by 34% to reach £367m for the quarter and had announced in March that they had one style of trench coat sell out the day after the Duchess of Cambridge was spotted wearing it.
Consensus expectations for sales had been at 24% growth and they had a blockbuster performance coming in at 34% said Investec Securities Katherine Wynne as share of the business increased to all time highs.
By Burberry focusing their strengths on the high-end tourist market and luxury-focused customers they have been able to insulate themselves from the increase in the costs of raw material and the varied other cost pressures hitting competitors. Their effort to expand in Asia showed with 20% of the increase from sales in China.