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Burberry sales grow on demand for designer Tisci’s new looks
[PARIS] Burberry Group Plc's new designer is boosting the UK luxury brand with a revamped look that's selling well in China.
Store sales rose 4 per cent on a comparable basis for the three months through June, double the rate analysts had predicted. New designs from Riccardo Tisci, formerly of French fashion house Givenchy delivered strong double-digit percentage growth, the trench-coat maker said Tuesday.
Sales in mainland China rose in the mid-teen percentages, Burberry said, even as the country reported its slowest economic growth in nearly three decades. Chinese policies including cuts to sales taxes and import duties are encouraging shoppers to rein in foreign shopping trips and instead spend at home.
The strong report from Burberry, the first European luxury company to report sales this quarter, could boost prospects across the sector amid questions about the resilience of Chinese demand.
Interest in Tisci's fresh looks helped offset the impact of continued store closures. Burberry has been closing stores in non-luxury and discount locations as it aims to boost perception of the brand.
A year after Tisci's arrival at Burberry, his designs made up more than half of products in stores by the end of the quarter, the company said.
The designer has plastered a flashy new monogram print across duffel bags, hoodies and shoes in a bid to make the brand more visible. Alliances with top models, pop stars and style bloggers have helped to amplify his message online.
Rihanna, Madonna, and Irina Shayk have all been early adopters of the brand's new look.