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Burberry first half revenues up 17%

Sales of outerwear and leather goods, including Burberry’s stand out shearling jackets and boots, drove a 17% increase in underlying revenue at the luxury goods brand over the six months to September 30.

Burberry reported a 20% increase in underlying retail sales, which were £294m in the same period last year, driven by sales of its core ranges of outwear and leather goods. Like-for-like sales rose by 9% over the period.

New retail space contributed 7% to the uplift, and mainline stores delivered double digital growth in both quarters – up 10% and 8% respectively.

The Asia Pacific and European regions continued to deliver double digit comparable store growth, with Hong Kong, the UK, Italy and France among the best performing markets. Same store growth in the Americas was unchanged year-on-year due to a continued focus on improving margins. Burberry is planning to increase retail space by 25% in teh Asia Pacific region over the second half with about 15% of that in China, which transferred from wholesale to retail on September 1.

Wholesale underlying revenue rose by 17%.

Burberry said the figure reflected restocking by wholesale customers, following reduced demand in the same period last year. Burberry’s Asia Pacific, the Americas and Emerging Markets divisions showed above average growth, while sales in Europe, its largest wholesale group, were also slightly ahead of last year.

Burberry said it was predicting a 10% rise in second half wholesale revenue.

Angela Ahrendts, Burberry chief executive, said: Tthe momentum at Burberry continues, with 21% revenue growth and a material improvement in the gross margin in the first half. While mindful of our strong second half last year, we currently expect adjusted profit before tax for the full year to be in the top half of market expectations.”

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