Burberry buoyant as sales surge by 23%
Luxury goods group Burberry said retail sales rose 23% as demand remained strong in key markets including the UK, France and China.
As well as sales of traditional Burberry favourites such as jackets and handbags, the company reported strong growth in knitwear, men's tailoring and accessories, fragrances and watches,
The demand meant store like-for-like sales were up by 12%, with the total sales haul from its retail estate, which includes 192 shops and 208 concessions, reaching £743m for the six months to March 31. Looking forward, Burberry said it planned an increase of between 12% and 14% in average retail selling space in the current financial year.
The second half update was broadly in line with City expectations, although shares were 4% lower today having touched a record high in trading on Monday.
Across the group and including wholesale markets, revenues were up 18% to £1.03bn in the half year.
Burberry's profits are expected to be £372m for the year just ended, compared with £295.7m a year earlier, Investec Securities said.
Keith Bowman, equity analyst at Hargreaves Lansdown stockbrokers, added that Burberry's growth was the envy of most other retailers, helped by its expansion in Asia and emerging markets.
He said: "Burberry's luxury brand status remains undiminished, with the Queen's Diamond Jubilee celebrations potentially providing a boost."