Belfast Telegraph

Wednesday 1 October 2014

Burberry beats the forecasts via China

Luxury clothing brand Burberry allayed fears of a sales slowdown in China after announcing forecast-beating results.

The fashion group revealed a 9% jump in sales to £1.116bn in the six months to April, well ahead of analysts' estimates.

It said demand from Chinese shoppers for its high-end products such as leather bags and coats helped it report a "strong finish".

Retail sales, a growing part of its business and now 75% of the entire group, was up 7% on a comparable basis to £840m.

Its shares gained 58p to 1324p on news of the healthier results.

Angela Ahrendts, chief executive, said the brand had a particularly strong "Christmas and Chinese New Year" but she expects "the external global environment to remain challenging".

Finance boss Stacey Cartwright, who will leave in July to be succeeded by Carol Fairweather, said Burberry now has "strong brand momentum" and said a sales surge of expensive leather handbags confirmed this.

The sales results will be a relief to those concerned about growth potential for global luxury. Concerns were raised on Monday when LVMH revealed its weakest quarterly growth rate since 2009.

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