Burberry Q2 revenue tops forecasts

Burberry Q2 revenue tops forecasts

London: British luxury goods group Burberry Group Plc posted a shallower-than-expected fall in second-quarter underlying revenue on Wednesday and signalled an improvement in some of its second-half sales trends.

The 153-year-old maker of raincoats and handbags said it made revenue of £343 million ($548 million) in the three months ended 30 September, down 5% at constant currencies.

Analysts’ forecasts ranged from £320 million to 335 million in a Reuters poll of eight banks and brokerages.

Luxury goods makers have been hit hard in the global recession, but Burberry, known for its camel, red and black check pattern, responded quickly by slashing costs, jobs, stock and range assortments.

After plunging as much as 70% last year, its shares have recovered almost all of their losses, outperforming the DJ Stoxx personal and household goods index by almost 100% this year.

Retail revenue rose an underlying 16%, including like-for-like growth of 5%, as double-digit percentage rises in Europe and Asia offset similar sized declines in the United States and Spain.

Burberry said it expected to open around 15 stores over the full year, at the top end of its previous guidance.

Wholesale revenue fell an underlying 21%, while licensing revenue was down 9%.

Burberry said it expected second-half wholesale revenue would fall an underlying 15% and raised its full-year guidance for licensing revenue to a decline of 5 to 10% from a fall of 10 to 15% previously.

Burberry shares, which entered the UK’s benchmark FTSE-100 index last month, closed at 537 pence on Tuesday, valuing the business at about £2.3 billion pounds.