Burberry reported a 27% hike in revenue to £470m in the three months to December 31 with double digit growth across both their wholesale and retail sectors.
Underlying wholesale revenue at the luxury retailer and brand grew by 15% to £112m with strong consumer demand leading to higher in-season orders. Excluding China, wholesale revenue grew by 35% at constant exchange rates.
Burberry added that, excluding its restructured Spanish business, retail revenue was up 36% on an underlying basis to £335m during the period with outerwear and large leather goods driving around half of the growth.On a like-for-like basis retail sales were up 14%.
Burberry increased its selling space during the period, which generated 8% of this underlying growth. China contributed a further 14% after transferring from wholesale to retail on September 1. The Americas, Asia Pacific and Europe all delivered double-digit comparable store sales growth, with particular strength in the UK, France, Hong Kong and Taiwan.
Total licensing revenue in the third quarter decreased by 7% on an underlying basis. Burberry expects full-year licensing revenue to decline by a mid single digit percentage following the termination of its final menswear licences and its Japanese leather goods licence.
Angela Ahrendts, chief executive officer, said there had been “strong, consistent growth in both retail and wholesale and in every product division and region”.
She added: “As a result, we now expect adjusted profit before tax for the current financial year to be at the top end of market expectations. Ongoing initiatives in retail, digital, product development and new markets underpin our confidence in the future.”