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.
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.
