Burberry second half sales up 18 per cent

The 156-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, today reported total revenues of £1.027bn for the six months to the end of March, in line with analysts’ average forecast of £1.03bn in a Reuters poll.

The company, which has a factory in Castleford, West Yorkshire, said retail revenues, which now account for 72 per cent of group sales, rose almost a quarter to £743m and that the outlook was good.

“We are pleased with Burberry’s finish to the year across all channels, regions and product divisions,” chief executive Angela Ahrendts said in a statement.

“Looking ahead, while we remain vigilant about the external environment, our global teams continue to focus on optimising our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth.”

Wholesale and licensing sales rose 7 per cent and 5 per cent in the second half, respectively.

The group expects to increase its average retail selling space by up to 14 per cent in the current fiscal year and sees mid single-digit percentage growth in wholesale revenues for the first half of 2012/13.

Burberry said underlying revenues rose 15 per cent to £453m in the fourth quarter, helped by continued growth in the United States and emerging markets.