Licencing up 12% in Q3 with watches one of the fastest-growing sectors
Watch sales at Burberry grew strongly in the three months to December 31 as the group delivered total revenues up 27% to £574 million.
Burberry listed its watches as being “among the fastest growing categories” at the luxury brand, alongside knitwear, men’s accessories, fragrance and tailoring.
Revenues from the British brand’s licensing division were up 12% on an underlying basis in the period, which includes its watches that are distributed in the UK by Fossil. The global growth of the watch segment of this division was described by the brand as “excellent”.
Sales of watches were strong at Burberry’s own retail outlets, which enjoyed total revenue growth of 23% to £417 million and like-for-like sales up 13%. The brand’s stores in London, Paris, Beijing and Hong Kong all outperformed expectations and the group opened six new stores in the period.
Burberry chief executive Angela Ahrendts said: “Burberry has delivered another strong performance, with a 21% increase in revenue in this important third quarter. Our investment in flagship markets and digital technology has enabled our global teams to continue to drive customer engagement, enhance retail disciplines and improve operational effectiveness, further strengthening brand momentum.
“Looking ahead, we remain focused on executing our proven core strategies to achieve long-term sustainable growth, while staying mindful of the challenging macro environment.”