22nd Jan 2020 07:50
(Alliance News) - Luxury goods retailer Burberry Group PLC on Wednesday edged its full-year revenue guidance higher after reporting sales growth over the pivotal Christmas trading period.
In the period to December 28, retail sales rose 1.1% year-on-year to GBP719 million from GBP711 million, or by 2% at constant currency. On a like-for-like basis, sales climbed 3% during the period, building on a year before when they grew by 1%.
The company, famed for its checked print and trench coats, said the revenue increase was due to a rise in full-price sales, which ultimately offset disruptions from civil unrest in Hong Kong.
In its Asia Pacific unit, sales rose by a low-single digit, Burberry said, with mainland China up in the "mid-teens" while Hong Kong sales halved.
In Europe, the Middle East, India & Africa, tourist spend helped sales climb in the high single-digits.
Growth in the Americas was stunted however, with progress in the US offset by declines in Canada.
For the financial year ending March, the company now expects revenue to grow by a low single-digit percentage, at constant currency. Previously, it saw flat sales at constant currency.
Burberry said: "Adjusted operating margin is expected to remain broadly stable despite the impact of disruptions in Hong Kong. This includes cumulative cost savings of GBP125 million, ahead of our previous guidance of GBP120 million.
"Financial 2020 is the second year of our plan to transform Burberry. Our focus in this phase is on investing to elevate our product offering, re-energise our brand and align distribution to our new luxury positioning. Against this backdrop, we made good progress in the quarter as we increased the availability of new products and continued to evolve our retail and wholesale networks."
The company added that it is "mindful of the uncertain macro-economic environment".
By Eric Cunha; [email protected]
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