Burberry maintains year guidance as Q1 sales rise

LONDON - Reuters

Burberry managed to maintain its full-year guidance as it posted an 18 percent rise in first quarter underlying retail revenue. AFP photo

British luxury brand Burberry maintained its full-year guidance as it posted an 18 percent 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 on yesterday it made 339 million pounds ($503 million) of retail revenue in the three months to June 30.

That compared with analysts’ average forecast of 316 million pounds, according to a company poll, and 280 million pounds in the same period last year.

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 (EMEIA) division.

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.

Shares in Burberry, up 14 percent over the last three months, valued at 6.3 billion pounds.