Burberry beats forecasts

 
City A.M. Reporter
Burberry posted first-quarter sales slightly above forecasts as it raised expectations for its wholesale operations, bolstered by the Americas, emerging markets and travel retail.

The British maker of raincoats and leather goods, identifiable by their camel, red and black check pattern, said Wednesday that revenue rose 34 per cent on a comparable basis to £367m, slightly above expectations of £340m.

Thanks to higher than planned in-season orders received to date, Burberry said it now expected wholesale revenue excluding China to increase by a high teens percentage at constant exchange rates in the first half, up from its previous forecast of mid-teens growth.

Burberry added it expected a percentage gain for licencing revenue in the current year to March in the mid-single digits.

The group has seen its shares rise sharply over the past year on the back of its successful turnaround and recurring speculation it could be acquired.

Burberry shares hit a record high last week together with other luxury stocks such as Hermes and LVMH driven by investors' anticipation of strong first-half results on the back of buoyant demand from major markets such as Asia.

Investors have been piling money into luxury stocks, attracted by fast-growing demand from emerging markets and luxury companies' ability to raise prices to pass on higher raw material prices without affecting demand.