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Clothing retailer Burberry posts 22% retail sales hike in year

14 Apr '06

3 min read

Luxury clothing company Burberry Group plc has reported its trading for the six months ended 31st March 2006.

The company reported that sales increased by 5 percent to £753 million for the year ended 31st March 2006 and by 6 percent to £390 million in the second half.

Retail sales were up 22 percent to £325 million in the year and up 27 percent to £196 million in the half, while wholesale sales dropped 7 and 12 percent to £347 million and £152 million in the respective periods. Growth came from newly opened and existing stores that traded particularly well in the fourth quarter.

Commenting on the trading results, Rose Marie Bravo, Chief Executive, stated, “Retail operations were the highlight of Burberry's fourth quarter. Consumers' favorable response to spring merchandise, particularly womenswear, and an exciting advertising campaign contributed to the strong retail performance."

"At the same time, the strategically important shift to concession format for a significant portion of our business in Spain was completed. During the period, we also successfully launched a major new fragrance, Burberry London,” he added.

Total revenue in the six months to March 2006 increased 3 percent on an underlying basis (i.e. adjusted for (i) the Taiwan Acquisition, (ii) the portion of Burberry's business in Spain affected by the retail conversion and (iii) exchange rate differences). Total reported revenue increased 6 percent in the half.

In the fourth quarter, retail sales growth accelerated relative to that of the third quarter, producing a 16 percent underlying increase. In the US, new and refurbished stores largely drove sales growth. The majority of Continental European markets achieved strong gains driven by new stores and momentum at existing stores.

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