Burberry Posts Boost in Q1 Retail Sales

Orchard bag in House check with bridle leather trim from the Burberry fall/winter collection

Orchard bag in House check with bridle leather trim from the Burberry fall/winter collection

London—Thanks to sales of its more expensive merchandise in Asia and the Americas, Burberry Group Plc reported Wednesday that its quarterly retail sales rose 18%. The news boosted the company’s shares to a nine-month high.

For the quarter ended June 28, Burberry posted retail revenue of 339 million pounds (about $504.7 million). That was well ahead of analysts’ average estimate for 316 million pounds in sales.

Comparable store sales increased 13%, beating analysts’ estimate for a 5% increase.

“Spring/Summer 2013 was a standout season,” Angela Ahrendts, chief executive, said. “The macro outlook remains uncertain and we will continue to focus our investment on profitable high-growth opportunities by channel, region and product categories.”

Outerwear and large leathergoods accounted for more than half the growth, according to Burberry. Men’s accessories and tailoring outperformed as well as its higher-priced Prorsum and London lines as a percentage of sales, the company reported. Customer traffic increased strongly online, while visits to the stores were “soft.”

By region, comparable stores sales rose 10% in the Americas and Asia-Pacific led by Hong Kong and China. Comparable store sales in Europe, the Middle East, India and Africa posted “high single-digit” growth. France and Germany remained “robust,” while Korea showed “early signs of improvement,” Burberry said.

Burberry reiterated its previous forecast for a full fiscal year retail sales in the low-to-mid single digit percentage. The company also seeks to widen “modestly” its operating margin from the 17.1% it reported last year.

 

 

 

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com