Retail arm shines at Burberry

17th Nov 2009 07:13

The retail side of Burberry outperformed the wholesale side as the luxury fashion group reported a rise in half-year revenues, thanks to favourable exchange rates.Revenue in the six months to 30 September rose 27%, or 14% at constant exchange rates (CER), to £311.6m in the retail channel, from £245m the year before.Like for like sales growth was 2% over the half year, and 5% in just the second quarter.The wholesale division’s revenue over the same period was down 15% (23% at CER) to £216.1m, from £254.4m a year earlier.Licensing revenues rose 13% to £44.7m from £39.7m, but were down 6% using CER.Total sales were up 6% to £572.4m from £539.1m a year earlier, but with the favourable movements of exchange rates stripped out, were down 5%.Profit before tax slipped to £78.4m from £97m. The 2009 figure includes a £4.2m charge relating to restructuring costs.Looking to the full year, the group expects average selling space to increase by between 8% to 10% on the retail side. Average selling space increased by 12% in the first half, with about 6& to 7% planned for the second half (net of the impact of the stores closed in the first half).Wholesale revenue over the full year is forecast to decline by around 15% from the preceding year’s level at CER.Licensing revenue should decline by between 5% and 10% at CER.The interim dividend has been increased by 4% to 3.50p, ‘reflecting strong financial position and momentum in business.’