British luxury brand Burberry posted a 14 per cent rise in total first half revenue, although it warned that the external environment was becoming more difficult.
The 158-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, said it made revenue of £1.1bn in the six months to September 30, reflecting a strong performance across all regions and continued digital growth.
The outcome was driven by retail sales growing 15 per cent to £748m - bang in line with analysts’ average forecast, with comparable sales growth of 10 per cent.
Wholesale revenue rose 13 per cent to £317m. However, for its second half to March 31 Burberry expects wholesale revenue at constant exchange rates to be down by a “mid single-digit percentage”. That reflects a more cautious approach from customers selling to the European consumer and in Asian travel retail markets. The luxury goods industry is currently facing a testing time, with the Ukraine crisis hitting demand in Russia and anti-government demonstrations in Hong Kong adding to concerns about a slowdown in China. Burberry said that if exchange rates remain at current levels, the full impact on reported retail/wholesale profit in the 2014-2015 year will still be material.
Burberry is led by chief executive Christopher Bailey, who was born in Halifax.