Buoyant Burberry still in fashion
Luxury goods group Burberry revealed another bigger-than- expected surge in sales as shoppers snapped up coats and large leather goods.
The company, which is famous for its red, black and camel tartan design, reported continued strength in the UK and rising demand from Chinese consumers as group-wide retail sales for the quarter to December 31 jumped 36%.
Buoyed by the strength of trading in its third quarter, Burberry said it now expected profits for the current financial year to be at the top end of market forecasts.
It is the latest upgrade from the retail chain, which saw shares rise by more than 4% yesterday.
Burberry said same-store retail sales grew by 14%, with operations in the Americas, Asia Pacific and Europe all delivering double-digit growth. Comparable store growth in China was more than 30%, it added.
Burberry said outerwear and large leather goods accounted for about half of the retail division's growth, helped by an increase in the average price per unit sold.
During the quarter, Burberry opened seven stores as well as a flagship store in Beijing showcasing its digital in-store technology.
Across the second half of the year, average selling space is expected to increase by about 25%, with about 15% in China.
With revenues from wholesale operations up 15%, Burberry said its total revenues rose by 27% in the three months to December 31.