Romeo Beckham helps us fall for Burberry
AN advertising campaign featuring 10-year-old Romeo Beckham helped luxury fashion group Burberry notch up a 13% hike in sales after an "exceptional" response to its spring/summer collection.
The group enlisted the budding fashion model and son of former Spice Girl Victoria and former England skipper David Beckham as the star of its latest campaign, alongside models Cara Delevingne and Edie Campbell.
Burberry said spring/summer was a "standout season" for the group, with its high-end Prorsum fashion range and accessories such as the Blaze and Orchard bags proving a massive hit with shoppers.
The first quarter like-for-like sales rise marks an impressive increase over the 7% growth seen in the previous six months, with total retail sales in the three months to June 30 up 18% at £339m, excluding exchange rate effects.
Burberry said: "In what remained an uneven trading environment, there was an exceptional consumer response to spring/summer 2013." It added that its advertising campaign and catwalk shows generated "record reach and engagement".
The group said store sales were led by Hong Kong and China, with double digit growth in comparable trade across Asia Pacific and the Americas.
It added that it also saw "high single-digit" growth across Europe and the rest of its global operations.
While customer footfall – the number of shoppers visiting its stores – was "soft", Burberry said this was offset by strong growth online.
But despite the sales lift, Burberry is still expecting half-year underlying pre-tax profits to drop below the £173m figure reported a year earlier.
Wholesale revenues remain under pressure, and it takes an initial hit from bringing perfumes and cosmetics in-house earlier this year.