Burberry storms forward in all regions

18th Jan 2011 07:29

Bumper demand for outdoor coats and other luxury accesssories meant a storming third quarter for Burberry with revenue up by 30% and profits now set to hit the top end of forecasts this year. "The Burberry team delivered a 30% increase in revenue in the third quarter, with strong, consistent growth in both retail and wholesale and in every product division and region," chief executive Angela Ahrendts said."As a result, we now expect adjusted profit before tax for the current financial year to be at the top end of market expectations. Ongoing initiatives in retail, digital, product development and new markets underpin our confidence in the future," she added.Sales overall rose by 27% to £480m from £380m. Retail sales by 36% to £335m on an underlying basis. New space generated 8% of this underlying growth, while China contributed a further 14%.Comparable store sales in the third quarter grew by 14%, with mainline stores doing very well. The Americas, Asia Pacific and Europe all delivered double-digit comparable growth, with particular strength in the UK, France, Hong Kong and Taiwan. "Outerwear and large leather goods again accounted for about half of the growth. This mix benefit contributed to a further increase in average price per unit sold," Burberry said.Wholesale revenue grew by 35% to not including China, as deliveries came through in the third quarter from the fourth quarter compared to last year. Earlier deliveries were driven by monthly flow of product and strong demand from end consumers. Licensing revenue dipped slightly to £23m in the quarter.