Burberry retail revenue up 13% in six months to March 31

17 Apr '13

4 min read

Burberry announces results of six months to 31 March 2013.

Highlights for the six months to 31 March 2013

-Total revenue £1,116m, up 9% underlying

Retail revenue £840m, up 13% underlying

- Retail now 75% of group revenue

- Comparable store sales up 7%

- Led by Asia Pacific, especially Greater China

- Double-digit growth in all four product divisions

- Outerwear, mens and digital outperformed

- FY 2014: low to mid single-digit % increase in retail revenue planned from net new openings

Wholesale revenue £220m, down 3% underlying, as guided

- Wholesale now only 20% of group revenue

- North America, Asia Travel Retail and Emerging Markets all up

- European specialty store rationalisation continued

- H1 2013/4: excluding Beauty, underlying wholesale revenue planned down about 10%

Licensing revenue £56m, up 3% underlying, consistent with guidance

- Helped by launch of The Britain watch and Body Tender fragrance

- FY 2014: excluding fragrance royalties, underlying licensing revenue expected to be slightly up

Further strategic and operational progress

- Ten stores opened including Chicago flagship and Knightsbridge mens store

- Strong brand momentum; Prorsum, London and leather bags outperformed

- Personalised product and marketing initiatives for Prorsum AW13 show

- 1 April 2013: integration of Beauty

Angela Ahrendts, Chief Executive Officer, commented:

“With three-quarters of our revenue now generated in retail, we are pleased with the 13% growth in this channel in the second half, driven by continued innovation in product, marketing and customer service, especially over Christmas and Chinese New Year.

Looking forward, while we expect the external global environment to remain challenging, the team is intensely focused on optimising the significant opportunities that exist for the brand across geographies and product divisions, with particular emphasis on unlocking the potential of our digital platform and our newly-integrated fragrance and beauty business.”

Retail

Retail sales, which accounted for 75% of total revenue in the second half, grew by 13% on an underlying and reported basis, benefiting from the consistent execution of key retail strategies. All four product divisions delivered double-digit growth, as did fashion and replenishment.

While trading continued to be uneven in the period, comparable store sales grew by 7% (Q3: 6%; Q4 8%), with the balance from new space.

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