“British luxury brand Burberry posted a 14 percent rise in underlying retail revenue in the Christmas quarter, though it cautioned that at current levels, exchange rates will be a significant headwind in the balance of its second half,” James Davey and Astrid Wendlandt report for Reuters. “The 158-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, said on Wednesday it made 528 million pounds ($869.1 million) of retail revenue in the three months to December 31.”
“That compared to analyst’s average forecast of 520 million pounds, 464 million pounds in the same period last year and first half growth of 17 percent. Comparable store sales rose 12 percent, compared to 13 percent in the first half,” Davey and Wendlandt report. “‘This performance reflects continuing strong brand momentum and our team’s intense focus on retail execution, supported by a planned increase in investment in marketing, customer service offline and online and our retail portfolio,’ said Chief Executive Angela Ahrendts.”
“Shares in Burberry have fallen 7 percent since October 15 when it said Ahrendts will step down in mid-2014 to take up a job at Apple (AAPL.O) and hand over to creative director Christopher Bailey, but are still up 11 percent over the last year,” Davey and Wendlandt report. “The jury is still out on whether sales growth in the luxury goods industry this year will match, drop or slightly outpace the 10 percent rise recorded last year at constant currencies… ‘The macro environment remains uncertain, but we are confident that our proven strategies will continue to deliver long-term value for shareholders,’ said Ahrendts.”
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