Burberry reports boost in revenue
Burberry has enjoyed a boost to revenues despite a “difficult” environment.
Luxury UK clothing brand Burberry has reported a significant rise in revenues despite admitting to a "difficult" market environment.
The company announced revenues of £1.1 billion with 14 per cent underlying growth to September 30th 2014, as it performed well across all regions as well as its digital presence. Retail revenue stood at £748 million, an underlying increase of 15 per cent, while sales within this sector were up ten per cent. Burberry noted that its rainwear, womens Prorsum, leather bags and mens tailoring were key drivers for this success.
Burberry has been branching out in recent months and announced the launch of its Mr Burberry fragrance. It is the company's latest venture into the perfume and aftershave market and is hoped will appeal to its male customers and provide a boost to sales heading towards the end of the year.
The first half of 2014 provided Burberry with some highlights including wholesale revenue rising to £317 million with 13 per cent underlying. The figures, excluding beauty, boasted five per cent underlying with earlier deliveries and in-season orders growing during the first half. However, the company is wary of cautious spend from European customers in the second half of 2014.
Christopher Bailey, chief creative and chief executive officer of Burberry, said: "Looking ahead, while mindful of the more difficult external environment, we have never been better prepared internally for the all-important festive periods.
"With our teams intensely focused on delivering outstanding products and experiences, alongside continued investment to drive productivity and profitable growth over the long term."
There had been concern over summer that Burberry's profits could be hit by exchange rates in the coming months. The company was wary that if exchange rates stayed at their current level then it could potentially result in its losing £55 million before the close of the year.
Shares in Burberry opened 4.39 per cent down at 1,414 at 09:06 BST on Tuesday (October 14th).
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