Burberry sales growth slows

City A.M. Reporter
Luxury brand Burberry posted a slight slowdown in quarterly sales growth as trading conditions worsened in its markets.

The 156-year-old firm, famous for its raincoats lined with a distinctive camel, red and black check pattern, said on Wednesday revenue was £408m in the three months to the end of June, its fiscal first quarter, an underlying increase of 11 per cent.

That was down from growth of 15 per cent in the fourth quarter of the previous year and compares with analysts' consensus forecast for growth of 13 per cent, according to a company poll.

Chief Executive Angela Ahrendts described the firm's performance as "robust ... against a more challenging external environment."

Burberry's and other luxury goods firms' shares have wobbled in recent months over worries about Europe's debt crisis and slowing growth in some emerging markets like China, where runaway demand for high-end goods has offset weaker trends in the United States and Europe.

The group's retail revenue was up an underlying 14 per cent to £280m, with comparable store sales up 6 percent, led by growth in the UK, France, Germany and China.

Wholesale revenue rose an underlying nine per cent to £102m, in line with company guidance.

However, licensing revenue fell an underlying five per cent to £26m, impacted by the phasing of licence terminations.

Burberry said talks with Interparfums were continuing regarding the potential establishment of a new operating model for the Burberry fragrance and beauty business.