Burberry reports flat sales
Burberry, the luxury goods group, announced on Wednesday that sales for the second half of the year have been flat, but that it expects full-year profits to be up by at least 15 per cent. Pre-tax earnings for the fiscal year which ended March were anticipated to be a minimum of £162 million ($307 million) compared to £141.2 million for the same period last year.
The group said total revenues in the six months to March 31 had increased by 6% at constant exchange rates while new stores helped to boost retail sales by a similar amount. On a year on year basis, average net retail selling space increased approximately 8% in the half.
Wholesale sales increased by 5% driven by Spring/Summer 2005 season sales. By region, growth was led by strong gains across Asian markets. Continental European markets achieved good growth. Following strong gains in the previous year, US wholesale sales increased marginally in the half. Strong gains in new and emerging markets also contributed to the increase.
In conjunction with local partners, the group opened seven franchised stores in the half, including a new store in
