Burberry sales rise18 percent in first quarter
Burberry beat forecasts for the second quarter to 30th June, with an 18% growth in sales, boosting the shares and allowing it to maintain its full-year guidance in the face of an otherwise struggling global economy. Burberry reports 339 million pounds of retail revenue in the three months to June 30.
The 18 percent rise in first quarter underlying retail revenue was driven by robust demand for spring/summer fashion, the company said. Comparable store sales growth was 13 percent, ahead of a increase of 8 percent in the fourth quarter of the previous financial year. Burberry highlighted “an uneven trading environment” and said sales of outerwear and large leather goods accounted for over half the growth, while men’s accessories and tailoring outperformed.
By region, the group saw double-digit comparable store sales growth in Asia Pacific, driven by Hong Kong and China, and the Americas and high single-digit growth in the Europe, Middle East, India and Africa. ”Looking forward, the macro outlook remains uncertain and we will continue to focus our investment on profitable high growth opportunities by channel, region and product categories.”
The group is planning to modestly increase its retail/wholesale margin in its full year. Burberry said in May first half profit would be below last year’s as its focus shifts from wholesale markets – sales through non-Burberry stores – to high-growth Latin American and Asian retail sales from Burberry branded stores. The firm has also previously forecasted to a 10 percent fall in first half underlying wholesale revenue, reflecting conservative buying by customers and the firm’s strategic rationalisation of wholesale accounts, particularly in Europe, and of entry price products, particularly in North America.