Burberry hikes Q1 sales 8%

15th Jul 2009 07:31

Luxury fashion group Burberry revealed an 8% rise in first quarter sales and said it has made a solid start to the year despite continued challenges in the retail industry.The increase was mostly driven by strong demand in the UK and South Korea while trading in Spain and the US remained difficult. Sales in the three months to 30 June rose to £229m from £211m the year before and better than market expectations of a 7.6% increase. Burberry posted a 14% sales increase in the fourth quarter of fiscal 2009."We continue to execute on our strategies by product, region and channel, while driving operational and cost efficiencies. Our brand momentum, strong product designs and continuing back-of-house improvements mean that we are well-placed to deliver sustainable long-term growth," the group said in a statement.Total licensing revenue in the first quarter fell 3% on an underlying basis, up 12% reported.In the year to March 2010, Burberry expects underlying licensing revenue to decline by between 10% and 15%, although reported licensing revenue should increase year-on-year reflecting currency benefits, it said.