Burberry off to a good start in new financial year

Burberry off to a good start in new financial year

British chain Burberry has had a strong first quarter in the financial year 2013/2014. Sales in shops were 21 percent higher at the end of June than in the same period a year earlier. Especially in China sales of the spring and summer collection were going strong.

Rise twice as big as predicted

Between early April and the end of June Burberry had sales of 339 million pound (just under 400 million euro), 21 percent more than in the same period of 2012, when sales were at 280 million pound. On a comparable basis there still was a rise of 13 percent: a lot more than the 8 percent of the last quarter from the previous financial year and more than double than was predicted by financial analysts.

 

The results are a lot better than expected: early May Burberry had even said profits for the first six months would be lower than in the previous year. Burberry is however very successful in China, where sales also had a double-digit growth.

 

Cautious about rest of financial year

Burberry is remaining cautious about the rest of the financial year. For the retail department the company is foreseeing a growth of five percent, but for wholesale the prospects for the first six months are bleaker. For the period until the end of September the company is predicting a drop of ten percent. Last year sales were at 253 million pound for the first six months.

 

The company wants to use the high sales to steadily increase the operational margins. Last year they were at 17.1 percent. 

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