• H2 sales up 7% to GBP707m
  • Retail sales up 14% to GBP437m
  • Expects FY profit above market consensus
Soaring second half for Burberry

Soaring second half for Burberry

Luxury goods company Burberry Group is expecting to beat full-year profit expectations after ending the fiscal year on a high with a 7% revenue rise in the second half.

Total sales were up 7% (6% underlying) to GBP707m (US$1.1bn) in the six months to 31 March, while retail sales surged 14% to GBP437m and comparable store sales increased 10%.

The company said the figures were driven by strong full-price sell-through of its spring/summer ranges, with Asia Pacific and Europe showing continued double-digit revenue growth.

Trade in the Americas improved to deliver a mid single-digit percentage rise, Burberry added.

Wholesale revenues declined 7% to GBP217m, ahead of previous guidance, while licensing revenue was up 23% (but declined 6% on an underlying basis) to GBP53m.

Burberry said it was planning an increase in average retail selling space during fiscal 2010/11 of around 10%, and was expecting overall wholesale revenues to rise 10%, or in the high teens excluding Spain.

“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,” said Angela Ahrendts, company CEO.

“Looking forward to 2010/11, while the pace and level of global economic recovery remain unclear, we remain confident that our strategies will continue to build momentum in the business.”