Burberry beats estimates
Burberry, maker of luxury commodities, topped expectations during the Christmas period
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Tuesday, 15, Jan 2008 08:25
Burberry has announced that total revenue increased by 23 per cent in its third quarter, topping analysts estimates.
"Volume growth overall was high, driven by the strength of our products, and we continued to increase infrastructure costs to support this strong growth," the interim statement from the clothing chain said.
At the same time, though, the release noted that retail sales were "modestly behind our plan," reflecting the difficult time many retailers had over the Christmas period.
Much of the growth was attributed to success in "under-penetrated" regions, including the United States, China and the emerging markets, and the strong performance of luxury handbags, outerwear, shoes and accessories.
The maker of luxury goods also stated that it experienced good growth throughout Europe, excluding a "more difficult retail environment" in Spain, where sales declined year-on-year.
"Burberry delivered 26 per cent sales growth, with solid double-digit growth in all channels and regions, notwithstanding economic and internal infrastructure challenges," said Angela Ahrendts, Burberry's chief executive.
"This performance reflects the continued appeal of our new product and marketing strategies globally."
Burberry's shares fell by 7.5 per cent on early trading following the news, slipping to 450p.