Burberry disappoints
Licensing revenue was down year-on-year at Burberry but otherwise the luxury brand powerhouse trundled on in its fiscal first quarter.
Licensing revenue was down year-on-year at Burberry but otherwise the luxury brand powerhouse trundled on in its fiscal first quarter.
Total revenue in the three months to the end of June was up 11% to £408m from £367m in the corresponding period of 2011.
Retail revenue was up 14% to £280m from £245m the year before, with the UK, France, Germany and Greater China leading the way. Like-for-like sales were up 6% year-on-year.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"Sales in retail, now about 70% of the business, increased by 14%, with initiatives to elevate brand equity balanced by improved store productivity and new space," said Angela Ahrendts, Burberry's Chief Executive Officer.
Wholesale revenue rose 8%, or 9% on a constant currency basis, to £102m from £95m a year earlier, but licensing revenue eased 2% (-5% on a constant currency basis) to £26m from £27m in the corresponding period of 2011, largely as a result of the the termination of certain non-apparel licences in Japan in June 2011
Performance in the Wholesale division was consistent with the mid single-digit percentage underlying growth the group had expected in the first half of the fiscal year, while the Licensing division's revenue is still expected to be more or less unchanged over the full year.
"Building on our balanced business model and strong operational foundation, we continue to invest in our retail, digital and marketing strategies to drive long-term sustainable growth, while remaining responsive to the changing external environment," Ahrendts said.
The market was disappointed with the update, however, with the shares down 60p to 1,224p in the first 15 minutes of trading.
JH
Sign up to Money Morning
Our team, led by award winning editors, is dedicated to delivering you the top news, analysis, and guides to help you manage your money, grow your investments and build wealth.
-
RICS: Buyer demand and sales surge - but how could the Budget affect the housing market?
The Royal Institute of Chartered Surveyors reports a positive shift in the UK property market, but adds that next month’s Budget is “keeping the mood in check”
By Ruth Emery Published
-
Big houses ‘driving the housing market’ as sellers ‘seek to beat Budget tax rises’, Rightmove data suggests
News The number of big houses being listed on the property website has gone up by a double-digit percentage across most regions of Great Britain.
By Henry Sandercock Published