Slight sales decline at Burberry
UK luxury goods label Burberry has posted slightly lower revenues for the three-month period ended March 31. Revenues fell 2% to £327 million ($502 million) from £334 million during the prior-year period. Non-apparel, including leather shoes and accessories was the strongest performing division.
The brand’s main markets are Hong Kong, the UK and the UAE; however, the company says there also has been some improvement in the US market. Burberry plans to increase average retail selling space by 10% over the next 12 months, opening 20 to 30 stores, mainly in the Americas and the Asia Pacific region.
Angela Ahrendts, chief executive officer, said: “With a stronger finish to the year than we had anticipated in both retail and wholesale, we now expect Burberry to deliver adjusted profit before tax in the year just finished slightly above current market consensus.
“Looking forward to 2010-11, while the pace and level of the global economic recovery remain unclear, we remain confident that our strategies will continue to build momentum in the business. To drive growth, we will increase investment in new regions, initiatives and digital commerce, while taking further action to enhance the brand.”
