People are still going crazy for Burberry's iconic trench coats and scarves

British brand Burberry is famous for its trademark print scarves and beige trench coats.

And it seems people still can’t quite get enough of them.

Burberry revealed in a trading update statement that “strong demand” for its heritage trench coats and scarves boosted revenue by 9% during the six months to March 31, 2015.

Other highlights from the report included:

  • Total revenue £1,423m, up 9%.
  • Retail revenue £1,059m, up 13%.
  • Double-digit % growth in Americas and Europe, Middle East and Africa.
  • Digital again outperformed in all regions

“We are pleased to report a robust second half performance, despite an uncertain external environment. Total revenue grew by 9% underlying and 13% in retail, as customers responded strongly to product innovation, especially in our core British-made heritage trench coats and scarves, while we continued to invest in digital and retail initiatives, including flagship openings in Los Angeles and Japan,” said Christopher Bailey, Chief Creative and Executive Officer at Burberry.

“We anticipate external challenges will continue in the current year, but remain confident in our long-term strategy to build the Burberry brand and business globally.”

All eyes have turned to Burberry after Apple snapped up former
retail boss Angela Ahrendts in May last year.

When Christopher Bailey took over from Ahrendts, Burberry combined the role of COO and CEO together. Over the last year, the stock has jumped by over 26%:

Analysts clearly love him.

“Christopher Bailey and Burberry have proved the doubters wrong,” said Paul Thomas, analyst at the retail consultants, Retail Remedy.
“Combining the roles of CCO and CEO raised a lot of eyebrows, but Bailey has carried on where Ahrendts left off. The numbers reported on Wednesday are clear evidence of this.

“That Burberry has recently become the subject of takeover speculation is testament to the strategy Bailey is delivering. The return to the Burberry staples of trench coats and scarves has served the brand well. It is a back-to-basics approach, which, of course, is anything but basic.

“Where Burberry excels is in its understanding of how technology, and digital, are part of the customer experience. The Burberry brand experience is end-to-end rather than focused on the end product. There is still volatility in certain markets but there is nothing to suggest Burberry won’t continue delivering strong levels of growth in the short- to medium-term.”

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