Burberry beats revenue forecast

Tag : wholesale burberry

British luxury goods group Burberry says its sales are holding upwell in increasingly tough trading conditions, helped by demand forfunky shoe styles and variations of its classic trench coat.

The firm, best known for its camel, red and black check, beatforecasts yesterday with a 26-percent rise in first-quarterrevenues.

But the outperformance was due mainly to early shipments ofAutumn/Winter ranges in its wholesale business, which the groupsaid would even out in the months ahead.

Burberry, which began in 1856 and made its name equipping polarexplorers, said sales at shops open at least a year rose 4.5percent in the three months to June 30.

That was down from 6 percent in the fourth quarter, but ChiefFinancial Officer Stacey Cartwright said that, excluding anotherweak performance from its Spanish business, first-quarter growthheld at around the same level.

"Retail sales patterns remain volatile on a weekly basis, but webenefited from our geographic diversity," she told reporters on aconference call, adding sales were driven by demand from the UnitedStates, France, Germany and South Korea.

Burberry shares have lost around a fifth in value over the pastmonth on fears a slowdown in consumer spending will hit sales,although luxury goods groups believe their wealthy customers aremore immune to a downturn than others.

The British Retail Consortium underscored that trading in Britainremains tough, reporting a 0.4-percent annual fall in the value oflike-for-like retail sales in June.

However, Sweden's Hennes & Mauritz, the world's third-biggestclothing retailer by sales, defied doomsters with an 8-percent risein June sales.

JPMorgan said it would keep their full-year forecasts for Burberryunchanged given tough trading conditions.