Burberry said the key growth drivers had been rainwear, its women’s Prorsum lines, leather bags and men’s tailoring

Burberry said the key growth drivers had been rainwear, its women’s Prorsum lines, leather bags and men’s tailoring

Fashion business Burberry is in a strong position to capitalise on the Christmas rush, analysts believe, after the company this morning (14 October) reported a double-digit rise in first-half revenues.

Retail revenues rose 15% on an underlying basis to GBP748m in the six months to 30 September, with comparable sales growth of 10%, thanks to double-digit comps increases in Asia Pacific and the Americas, and a mid-single-digit comps rise in EMEIA.

Burberry said the key growth drivers had been rainwear, its women's Prorsum lines, leather bags and men's tailoring.

Anusha Couttigane, senior fashion Analyst at Conlumino, noted: "Although Burberry saw some softening in growth amongst Chinese consumers both at home and abroad, strong web sales in Asia have helped it to maintain its upward trajectory there, with wholesale and retail sales combined taking GBP385m over the first six months - well over one third of the group's total."

Looking ahead, Burberry CEO Christopher Bailey hailed the period as a "strong first half" and said that, while mindful of the more difficult external environment, that it has never been better prepared internally for the all-important festive periods."

Couttigane, noted: "With retailers soon to be in full swing for the festive season, Burberry is in a strong position to capitalise on the Christmas rush, with a number of early deliveries fulfilled during H1. New CEO Christopher Bailey indicates that internal teams are keeping a cool head and are focused on driving long-term growth too. Having added six airport stores over the period, with a high concentration in Europe, we expect to see travel retail becoming a redeeming channel for Burberry's slower European market in the long term."

For fiscal 2015, Burberry has said net new space is still expected to contribute low to mid single-digit percentage growth to total retail revenue, through a combination of around 20 mainline store openings and 20 closures during the year.