With a little help from its friends in Asia and the Americas, Burberry got a solid sales boost this spring. The British fashion house reports that it brought in about $635 million in the three months ending June 30, with comparable sales up 12 percent. The two regions made up for sales growth in Europe, the Middle East, India and Asia that would best be described as "meh."
In case there was any doubt that Chinese consumers were a little over luxury brands, mainland China led the way to double-digit sales gains in the Asia-Pacific region, while online proved an effective outlet for American shoppers.
In fact, traffic to Burberry's e-commerce site is growing at a faster clip than traffic to its brick-and-mortar locations, at least in part a result of Burberry's aggressive digital marketing. Burberry also notes that its customers are responding well to customer service features that blend the online and offline worlds, like collect-in-store options and placing orders on iPads in-store.
Though Burberry saw low single-digit sales growth in Europe, the retailer opened four stores in the region over the course of the quarter, three of them in airports in London Heathrow, Madrid and Milan — key for capturing sales from tourists in those growing markets.