Some fashion trends may come and go, but luxury brand Burberry appears to be very much “in” when compared to its competition.
It has reported profits at a staggering £296million for the year to the end of March – that’s an increase of 40 per cent compared to the same month in the previous year.
Spending increase
The UK-based maker of raincoats and handbags, particularly noted for their camel, red and black check patterns, has announced it will invest between £180million and £200million in the year to March, 2012, on new shops and refurbishments in cities such as London, Paris, Chicago, Sao Paulo, Hong Kong and Shanghai.
Its decision follows a strong recovery in the global luxury goods market compared to last year – defying fears that it may be hit by austerity measures in Europe. For example, global luxury retailer LVMH announced strong demand for its champagnes and Louis Vuitton leather bags in February as it enjoyed a 73 per cent leap in full year profits. US consultancy Bain has raised its 2011 growth forecast for global luxury sales to eight per cent – that’s up from three-five per cent.
Burberry has now forecast a modest improvement in its profit margin for 2011-2012 – that following a record 15.6 per cent increase in 2010-11.
Luxury at the right price
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