The shares of Burberry (LSE: BRBY) (NASDAQOTH: BURBY.US) opened 6% higher at 1,550p this morning after the global fashion brand unveiled better-than-expected revenue growth in the final quarter of 2013.
Burberry, which designs and sells luxury clothing and accessories, grew its total sales by 14% to reach £528m for the quarter. Much of this growth was driven by double-digit revenue growth in Asia, specifically Greater China and Korea, while Burberry’s other regions expanded by high single digits.
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Burberry specified three important factors that drove its success this quarter. Hiring different language speakers on the sales floor, click-and-collect and digital sales outperformed relative to the traditional stores.
Commenting on the company’s latest results, chief executive Angela Ahrendts said:
“This performance reflects continuing strong brand momentum and our team’s intense focus on retail execution, supported by a planned increase in investment in marketing, customer service offline and online and our retail portfolio.”
After today’s results, Burberry has a market cap of around £7bn, and is valued at 18 times its expected earnings.
Of course, whether that valuation, today’s results and the future prospects for luxury retailing all combine to make shares of Burberry a ‘buy’ remains your decision.
