13th Jul 2016 06:23
LONDON (Alliance News) - Burberry Group PLC on Wednesday reported growth in revenue in the first quarter of its financial year, benefiting from the weak pound, and upped its guidance for full-year profit, but the company warned about revenue measured at constant currencies.
The luxury fashion designer said retail revenue in the three months ended June 30 grew by 4% year-on-year to GBP423 million, but within this, comparable sales declined by 3% in what Burberry described as a "challenging external environment".
Burberry said all three global regions of Asia, the UK and US experienced a low single-digit percentage comparable sales decline, due to persisting underlying cost-inflation pressures.
In the first half ending September 30, Burberry now expects wholesale revenue at constant exchange rates to fall by over 10% year-on-year, although full-year reported adjusted retail/wholesale profit should benefit by about GBP90 million if exchange rates remain as they are now.
Burberry added that it is now in a position to commence its share buyback programme of up to GBP150 million.
"We continue to focus on managing our business with agility whilst implementing the ambitious evolution of our strategies and ways of working we outlined in May, to position Burberry for long-term growth. These plans are now well underway and on track to deliver our financial goals.
This progress, together with our recent management appointments, gives us real confidence for the future," Chief Creative & Chief Executive Officer Christopher Bailey said in a statement.
On Monday, Burberry announced a series of changes to its management team which includes Bailey transitioning to president & chief creative officer, while newly-appointed Marco Gobbetti, who is currently CEO and chairman of Celine, will take over Bailey's CEO role.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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