Luxury clothing brand Burberry said an 'exceptional' performance at its retail division was partly helped by investment in digital and growth of its online business.
The London-based firm said in a London Stock Exchange announcement that retail revenue increased 18 per cent to £339 million in the 13 weeks to the end of June. Comparable store sales, those open at least a year, climbed 13 per cent.
Burberry said its stores benefited from well-received Spring and Summer ranges, broad-based growth across regions, offline and online; and its investment in its digital platform.
Its wholesale business fared less well in the period and revenues declined by about 10 per cent as economic conditions in some of its markets worsened.
It said it has now integrated its online business into its regional infrastructure as well as embracing social media, such as with the launch of Burberry Kisses. The site allows users to send an imprint of their kiss by smartphone as a digital letter to their loved one.
An article in the Guardian said Burberry has gained a strong foothold on Chinese social media sites such as Sina Weibo, the country's version of Twitter, Touku, which is similar to You Tube, and Douban.
Burberry has half a million followers on Sina Weibo but has also been lifted by famous fans such as actor Chen Kun who attended the recent menswear show and posted messages to his 48 million followers. The Guardian said that is 6 million more followers than Canadian pop star Justin Bieber.
It has given its shop assistants iPads to ensure shoppers have access to products not in store or to order different sizes. Meanwhile, tags in the clothes trigger films of catwalk shows on screens in store when the products are held close.
But Burberry said its profit in the first-half is is expected to be below last year after the decline in wholesale revenue in the first quarter.
Chief executive Angela Ahrendts said: 'We are pleased with our first quarter retail performance. But, looking forward, the macro outlook remains uncertain and we will continue to focus our investment on profitable high growth opportunities by channel, region and product categories.'
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