Burberry revenue up 2nd quarter

Burberry on Wednesday announced its half year trading results, which saw total revenue increased by 19%. The company’s retail revenue went up 25%, with comparable store sales growth of 11%. Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said: “We are delighted with Burberry’s 19% underlying increase in revenue in the first half of the year. Our new luxury outerwear, apparel and non-apparel collections, combined with our compelling marketing campaigns, have again driven demand in both our retail and wholesale channels. This performance is consistent with our profit expectations for the full year as we continue to increase our investment in the infrastructure of the business to support this strong growth.”

Burberry will release its interim results for the six months to 30 September 2007 on 14 November 2007. Accessories sales rose 35 percent in the fiscal first half as Burberry introduced Knight bags for £1,595 and Beaton styles for £1,095, said the chief financial officer, Stacey Cartwright. Burberry opened 11 stores in the first half to add to revenue from its outlets, which are more profitable than sales through wholesale customers like department stores.

Shares of Burberry fell 17.5 pence, or 2.63 percent, to close at 648.5 pence in London. The stock has added 20 percent in the past year.

Store openings expanded Burberry's selling space by about 12 percent in the first half as the company sought to catch up with Louis Vuitton, which has almost 50 percent more outlets. Burberry plans to open stores in Budapest, Copenhagen, Los Angeles, Florence and Venice during the second half.

Photo: Burberry AW08