Solid growth in Asia and Americas drives Burberry forward
Luxury brand saw quarterly retail revenue rise by £59m year on year
British luxury brand Burberry maintained its full-year guidance as it posted an 18 per cent rise in first quarter underlying retail revenue. Photograph: Barry Batchelor/PA Wire.
British luxury brand Burberry maintained its full-year guidance as it posted an 18 per cent rise in first quarter underlying retail revenue, driven by robust demand for spring/summer fashion.
The 157-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, said it made £339 million (€394.1 million) of retail revenue in the three months to June 30th.
That compared with £280 million in the same period last year.
Comparable store sales growth was 13 per cent, ahead of a fourth quarter increase of 8 per cent.
Burberry’s plan is to modestly increase its normalised retail/wholesale margin in the full year and it still expects first half pretax profit to be below the previous year.
It 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 division.
“Spring/summer 2013 was a standout season driven by innovative marketing,” said chief executive Angela Ahrendts.
“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.”
Shares in Burberry, up 14 per cent over the last three months, closed yesterday at 1,426p, valuing the business at £6.3 billion.