Burberry Q1 exceeds forecasts
UK-based luxury group Burberry has announced fiscal first-quarter sales above forecasts.
The leathergoods brand said it did not need extra funds through a listing on the Hong Kong stock exchange, even though it was stepping up investment in new shops and refurbishments this year.
“There is no need to raise capital, there is no catalyst for us to be considering that (a Hong Kong listing),” finance director Stacey Cartwright said.
Burberry said it planned to open 20-25 shops this year, slightly more than last year, while refurbishing a number of flagship stores.
Sales generated by Burberry's retail network, which contributes 66% of turnover, rose nearly 50% in its first quarter to June.
Ms Cartwright said the brand had benefited from strong growth in Asia and solid trading in France and Germany.
Thanks to higher-than-planned in-season orders, Burberry said it expected wholesale revenue excluding China to increase by a high-teens percentage at constant exchange rates in the first half, up from its previous forecast of mid-teens growth.
“The U.S. has performed very strongly within that wholesale guidance number. We believe we continue to outperform versus many of our luxury peers there,” Ms Cartwright said.
Burberry added it expected a percentage gain for licensing revenue in the current year to March in the mid-single digits.
Overall, Burberry revenue rose 34% on a comparable basis to £367 million, above expectations for £345 million.
