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Burberry rebounds from September profit warning

Burberry shares soared on Thursday after it reported 3% sales growth in its first quarter report. The company topped the FTSE 100 as share prices rose by 13.26%. Burberry looked to be in trouble last month when it issued a profit warning that said growth had slowed, which eliminated more than 20% from the share price of the luxury goods firm.

The company posted total revenue rises of 11% to £408m, and a 6% increase in comparable store sales growth, which excludes new store openings. Retail revenues, meanwhile, improved by 10% to £577m. The Chief Executive of Burberry, Angela Ahrendts, commented: “With continued brand momentum, Burberry has delivered a robust first quarter. Revenue was up 11% against a more challenging external environment. Sales in retail, now about 70% of the business, increased by 14%, with initiatives to elevate brand equity balanced by improved store productivity and new space.”

The market in China, however, has experienced a considerable slow down as a result of its weak economy. Burberry opened six stores internationally during the quarter, and has further plans to open another two flagship stores in London and Chicago later in 2012. The fashion business, which specialises in British heritage luxury products, also announced that it would directly operate its fragrance and beauty products from April 2013, when its licence with Interparfums SA will end. Ms Ahrendts said this was in line with the company’s plans to take greater control over the brand.

This was posted in Bdaily's Members' News section by Miranda Dobson .