Burberry Group plc, the global luxury company, reports on trading for the three months to 30 June 2008.
"I am pleased with Burberry's start to the year in an increasingly challenging external environment. Our brand momentum is strong, driven by product innovation and a focused management team.
This momentum, together with the diversity and balance we have across products, channels and regions, underpins our confidence for the future."
There will be a conference call for investors and analysts to discuss this update at 9am (UK time). The conference call can be accessed live on the Burberry website, with a replay available later.
Burberry will release its First Half Trading Update for the six months to 30 September 2008 on 14 October 2008. It will announce its interim results for the six months to 30 September 2008 on 18 November 2008.
Total revenue: Total revenue in the first quarter increased by 22% on an underlying basis (26% reported). There was double-digit growth in both the retail and wholesale channels; in Europe, Americas, Asia Pacific and Emerging Markets; and in womenswear, menswear, non-apparel and childrenswear.
This performance demonstrates the continued momentum of the brand, the impact of supply chain initiatives and the increased strength of Burberry's operations by channel, region and product.
Spain remains a challenging market in which Burberry continues to implement a series of initiatives, as discussed at the time of the preliminary results.
Retail: Retail sales, which accounted for over half of total revenue in the period, grew by 14% on an underlying basis (19% reported).
As a result of the excess stock in the business at the year-end, proportionally more inventory was sold year-on-year during the usual sale period, which continues into the second quarter.
Non-apparel contributed most to retail growth. Product highlights included lightweight outerwear, shoes and other accessories including belts. Revenue also benefited from earlier Autumn/Winter 2008 receipts.
In the first quarter, when the competitive environment remained volatile, Burberry's comparable store sales increased by 4.5%, including Spain which was down double-digits.
The Americas remained the best performing region, with particular strength in major cities such as New York, San Francisco and Chicago.
Europe and Asia both showed positive comparable sales growth, led by countries including France, Germany and Korea.
During the quarter, Burberry opened mainline stores in Cannes and Budapest, as well as a net 14 concessions in Italy, Korea and Spain, including four new childrenswear corners.
There was a 12% increase in average selling space year-on-year in the first quarter, with 12-13% expected for the year as a whole.
Wholesale: For the six months to 30 September 2008, based upon orders received to date, Burberry expects wholesale revenue to increase by over 10% year-on-year on an underlying basis.