Burberry delivers robust first quarter revenues

Wholesale revenue in the first quarter increased by 9% on an underlying basis (up 8% at reported FX), with some re-phasing of deliveries, mainly in Europe, into the first quarter from the second quarter.

This performance is consistent with guidance of a mid single-digit percentage increase in underlying wholesale revenue for the six months to 30 September 2012.  Further rationalisation of the brand’s distribution in both Europe and the United States is planned in this period.  Double-digit percentage growth is expected in key US department store doors and Emerging Markets franchise partners.

Licensing

Total licensing revenue in the first quarter decreased by 5% on an underlying basis (down 2% at reported FX).  Global product licences again delivered double-digit growth.  Japanese apparel royalty income was broadly unchanged while Japanese non-apparel income was down, largely reflecting the termination of certain licences in June 2011.  In the year to 31 March 2013, Burberry continues to expect licensing revenue at constant and reported exchange rates to be broadly unchanged year-on-year.

Discussions continue between Burberry and Interparfums regarding the potential establishment of a new operating model for the Burberry fragrance and beauty business.

Financial position

Except for the trading activities described above, there has been no significant change to the financial position of the company.

Burberry Group Plc