UK: Burberry shares hit as H2 sales slow
Luxury brand Burberry has seen its share price fall today (17 April) on the back of slowing sales growth over the second-half.
The company said underlying revenue grew 18% to GBP1bn over the six months ended 31 March. In the same period of the previous year, underlying revenue growth was 30%.
Retail revenue increased 23% to GBP743m, with retail now accounting for some 72% of group revenue. It also recorded 12% growth in comparable-store sales.
Wholesale revenue rose 7% on an underlying basis to GBP230m, with the brand reporting double-digit growth in the US, emerging markets and Asian travel retail.
Burberry is forecasting a 12-14% increase in retail selling space over the 2012/13 financial year, with growth weighted towards larger stores. It expects mid single digit growth in wholesale revenue and broadly unchanged licensing revenue.
"With underlying revenue up 18% in the second half, we are pleased with Burberry's finish to the year across all channels, regions and product divisions," said CEO Angela Ahrendts.
"Looking ahead, while we remain vigilant about the external environment, our global teams continue to focus on optimising our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth."
The company's share price was down 5.17% to 1,504p per share at 14:46 BST today.
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