British luxury brand Burberry plans to invest in bigger stores in its existing major markets following a 26 per cent jump in profit  to £376 million (US$590.02 million) in the year to March 31.

Burberry CEO Angela Ahrendts said one third of its £200 million (US$313.84 million) total expenditure over the coming year will be invested to larger format outlets in major cities such as London, Chicago and Hong Kong.

“We do feel that we’re under penetrated in those markets versus our peers which is why we’re focusing there but we also feel that those flagship markets are somewhat sheltered from the overall global economic environment,” said Ahrendts.

Burberry’s total revenue surged 24 per cent to about £1.9 billion (US$2.98 billion) with Asia Pacific sales grew by 41 per cent and 15 per cent in Europe and the US, partly contributed by high profile marketing campaigns starring Harry Potter actress Emma Watson and supermodel Kate Moss.

“Another bumper set of results for Burberry, which has perfected democratic luxury brand positioning. While positioned above the struggling high street, it is more affordable and more accessible to aspirational buyers – democratic luxury is in high demand,” said Jaana Jätyri, CEO of fashion trend forecaster Trendstop.com.

The coming year will see Burberry increase retail space by 12 to 14 per cent, opening around 15 new bigger stores in emerging markets and major global cities that are heavy tourist markets, with huge population density and higher percentage of high net worth individuals.

The 156-year-old luxury brand, which experienced a sales slowdown in April, remains bullish despite forecasts of weakening Asian demand. Burberry’s products that have never been better and growing number of consumers engaging with the brand will help Burberry achieve continuous momentum, says Ahrendts.

GB