Burberry continues to defy the current financial climate after it posted a 30% sales increase for the first half of the year. Total revenue for the first and second quarters rose to 830 million pounds, or roughly $1.29 billion US dollars, up from 641 million pounds in 2010.
These results came as a surprise to fashion analysts, who predicted the company would enjoy sales of 818 million pounds in the period. However it outperformed those estimates thanks to strong retail sales. Demand for Burberry’s luxury products increased in key markets, including New York, Paris, London, Hong Kong, Dubai, and Taipei.
The results are outstanding considering the troubled state of the Eurozone economies and concerns that China’s luxury goods market may be slowing down. Analysts say Burberry’s latest posting prove that despite the world’s finances, luxury goods are as popular as ever. This isn’t just good news for Burberry; it has positive implications for all prestige fashion labels. It seems that while times are tough, people are investing in high-end goods rather than wasting their limited resources on throwaway items.
Burberry hopes to capitalize on its current success by opening at least 10 stores in the second half of the financial year. We can expect to see new Burberry boutiques in Paris, China, and Latin America.
