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Burberry's handbags, outerwear & scarves sales strong
16 Jan '08
4 min read
Retail Retail sales, which accounted for over 60% of total revenue in the period, increased by 14% on an underlying basis (12% reported), modestly behind our plan.
Comparable store sales grew by 6% in the three months to 31 December 2007, with proportionally more inventory sold during our usual sale period.
In the United States, comparable store sales continued to show double-digit growth for the three month period, with better performances in major cities. Europe (excluding Spain) showed positive comparable store sales growth, with Italy again the best performing market.
However, Spain declined year-on-year in the third quarter, reflecting a more difficult retail environment throughout the period. Hong Kong remained the strongest market within Asia.
During the third quarter, we opened six mainline stores, including Florence, an additional store in Hong Kong and our fifth icon trial in the Beverly Center, Los Angeles.
There was an 11% increase in average selling space year-on-year in the third quarter, with 12% expected for the second half as a whole.
Licensing Total licensing revenue in the third quarter increased by 7% on an underlying basis (down 1% reported), with growth from both apparel and non-apparel licences in Japan.
This performance, which benefited from phasing differences relative to last year, is consistent with our expectation for the full financial year of broadly flat licensing revenue on an underlying basis.
We continue to expect the weakness of the yen to reduce reported revenue and profit by about £6m in the full year. A new fragrance, Burberry The Beat, will be launched during the fourth quarter by our partner, Inter Parfums, which will fund a supporting global advertising campaign.
Financial condition Except for the trading activities described above, there has been no significant change to the financial condition of the company.
Comparable store sales grew by 6% in the three months to 31 December 2007, with proportionally more inventory sold during our usual sale period.
In the United States, comparable store sales continued to show double-digit growth for the three month period, with better performances in major cities. Europe (excluding Spain) showed positive comparable store sales growth, with Italy again the best performing market.
However, Spain declined year-on-year in the third quarter, reflecting a more difficult retail environment throughout the period. Hong Kong remained the strongest market within Asia.
During the third quarter, we opened six mainline stores, including Florence, an additional store in Hong Kong and our fifth icon trial in the Beverly Center, Los Angeles.
There was an 11% increase in average selling space year-on-year in the third quarter, with 12% expected for the second half as a whole.
Licensing Total licensing revenue in the third quarter increased by 7% on an underlying basis (down 1% reported), with growth from both apparel and non-apparel licences in Japan.
This performance, which benefited from phasing differences relative to last year, is consistent with our expectation for the full financial year of broadly flat licensing revenue on an underlying basis.
We continue to expect the weakness of the yen to reduce reported revenue and profit by about £6m in the full year. A new fragrance, Burberry The Beat, will be launched during the fourth quarter by our partner, Inter Parfums, which will fund a supporting global advertising campaign.
Financial condition Except for the trading activities described above, there has been no significant change to the financial condition of the company.
Burberry Group plc
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