A 30% rise in sales Why it's i

Byline: By Rin Simpson and Cathryn Scott Western Mail

Louis Vuitton Watches

Fashion house Burberry hailed a 30% rise in underlying sales yesterday as demand for its luxury goods continued apace. The company, which earlier this year closed its Treorchy factory, said store sales had also jumped by an underlying 25% in the three months to June 30. Burberry closed its factory in Treorchy in March, saying it was not commercially viable, and moved production to China. More than 300 people lost their jobs. A protest campaign, which was supported by famous faces including Newport rappers Goldie Lookin Chain, Welsh Secretary Peter Hain and actress Emma Thompson, failed to keep the plant open.

Now it seems the negative publicity also failed to put shoppers off the brand, which posted pre-tax profits of pounds 156.3m for the year to March 31.

Burberry reported strong sales of its Beaton and Ashcombe bags during the first quarter, while its Knight bag - which retails at a cool pounds 1,595, about the same amount a Treorchy worker took home each month - hit the stores this month.

Chief executive Angela Ahrendts said the year was off to a "good start".

Same-store sales increased 9%, although Burberry's average selling space grew by around 14% over the quarter as the firm pursued expansion plans. Burberry opened four new stores - in Belgium, Italy, Spain and the US - over the period, although the sales growth came from a mix of new and existing outlets.

The retail business accounted for 58% of sales during the quarter.

Ms Ahrendts added that the group planned to open 10 new stores in the current financial year as part of its growth plans.

The fashion house's wholesaling business, which accounted for 33% of revenues, also saw a 51% increase in underlying sales as shipments were accelerated in advance of summer sales.

Licensing revenues were 6% higher, boosted by eyewear.

The company's upbeat trading figures pleased City analysts.

Seymour Pierce analyst Andrew Wade said, "This was an excellent performance through what has been a difficult period for the fashion retailers. We continue to see Burberry as a safe haven from much of the turmoil that will hit the sector."

But not everyone is as pleased with the results, which some see as coming at the Treorchy workers' expense.

Local GMB union representative Mervyn Burnett said, "It is disappointing, not that they have increased their sales but that they had to decide to close the factory in Treorchy to do it. They didn't need to transfer the work to China; it was clearly to increase profit. "

The GMB are still protesting against Burberry despite failing to stop the closure of the Treorchy factory, and plan to send representatives to the company's AGM today.

Replica Giverchy Handbags

Mr Burnett continued, "The GMB do hold shares and we deliberately held on to them in order that we could attend the AGM.

"Our investors are going and I met our local shop steward in Treorchy and we decided that our investors should vote against the remunerations package for the executives of Burberry.

"We think that's a better way of getting our message across, so even though the factory closed we are still protesting."

He added, "The company alway
Other articles:
http://mnbvfghe.blog.sohu.com/156418501.html
http://blog.eastday.com//mnbvfgh/art/1108346.html