Retail sales surge at Burberry in first quarter

13th Jul 2011 07:08

Underlying sales at iconic British luxury brand Burberry soared by 34% in the first quarter, driven largely by strong retail growth in China.Total revenue jumped from £282m to £367m in the three months to 30 June, as Retail sales surged by 49% (at constant currency) from £171m to £245m and Wholesale revenue grew by 11% to £95m, from £87m the year before. "We are pleased with Burberry's start to the year, with double-digit growth balanced across retail and wholesale and all regions and product categories," said chief executive officer Angela Ahrendts.Licensing revenue increased by 6% from £24m to £27m.The stores acquired in China last year contributed 20% to the 49% jump in Retail sales, with new space in all regions generating a further 14%. Comparable store sales grew by 15%. The firm said that its two core categories, outerwear and large leather goods, drove nearly half of the growth in mainline sales. The Burberry Prorsum division, its runway collection, and London also did their bit, with average selling prices increasing by double digits.In Wholesale, the group now expects revenue (excluding China) to rise by a high-teens percentage at constant exchange rates in the first half due to higher-than-expected in-season orders in the first three months of the year. Previously, a mid-teens growth was anticipated."While mindful of global macro challenges and increasingly tough comparatives in the balance of the year, we remain confident in our strategies and will continue to invest to drive profitable growth," Ahrendts said.BC