11th Jul 2007 07:00
Burberry Group PLC11 July 2007 Burberry Group plc First Quarter Trading Update Interim Management Statement 11 July 2007. Burberry Group plc reports on trading for the first quarter ended30 June 2007. Highlights • Total revenue increased 30% on an underlying* basis • Retail sales rose 25% underlying driven by new and existing stores • Wholesale revenue increased 51% underlying - Burberry continues to anticipate a mid-teens percentage underlying increase in wholesale revenue for the first half • Licensing revenue increased 6% underlying Revenue by geographical origin (statutory accounts format) First Quarter to 30 June ---------------£ million 2007 2006 % change -------- -------- -------- Europe (ex Spain) 63.1 44.1 43Spain 17.9 15.2 18North America 40.9 35.5 15Asia Pacific 45.6 40.6 12 -------- -------- --------Total 167.5 135.4 24 Revenue by channel of distribution First Quarter to 30 June % change --------------- ------------------£ million 2007 2006 Reported Underlying* -------- -------- --------- ---------Retail 97.0 82.0 18 25Wholesale 55.3 37.7 47 51Licensing 15.2 15.6 (3) 6 -------- -------- --------- ---------Total 167.5 135.4 24 30 * Underlying change is calculated at constant exchange rates. 2007/08 underlyingfigures are calculated at the same exchange rates used in the 2006/07 year'sreported results for the period. Commenting on the trading results, Angela Ahrendts, Chief Executive Officer,stated, "The year is off to a good start. Our key strategies continue to drivestrong retail performance and we are pleased that these retail-orientedinitiatives are benefiting wholesale partners as well. Results for the quarterare consistent with our expectations for the full financial year." Total revenue Total revenue in the first quarter increased 30% on an underlying basis (i.e.adjusted for year over year exchange rate differences). Total reported revenueincreased 24% in the period. Retail Retail sales accounted for approximately 58% of total reported revenue in thequarter. Retail sales in the period increased 25% underlying, 18% reported. Comparablestore sales increased 9%, against a strong prior year comparison. Averageselling space increased approximately 14%. During the quarter, Burberry openedfour stores, in Antwerp (Belgium), Bologna (Italy), Puerto Banus (Spain) andTampa (Florida). The Group opened a net six concessions, including those inItaly, Spain, Singapore and the UK, and three outlet stores. Burberry remains onschedule to increase average net retail selling space by approximately 13% forthe financial year. Retail performance was broadly consistent across the regions. In the US, gainswere balanced between existing and new store contributions. New space additionswere complemented by good gains at existing stores to produce strong performancein Europe, where Italy and Spain were the best performing markets. Led by HongKong, Malaysia and Australia, Asia Pacific continued to achieve strong salesgrowth through a combination of new and existing store contributions. Throughoutthe retail channel, key merchandise categories included outerwear, runwayapparel, luxury handbags and shoes. Wholesale Wholesale sales accounted for approximately 33% of total reported revenue in thequarter. Wholesale sales increased 51% underlying, 47% reported. In this typically smallwholesale quarter, the gain partially reflected the acceleration of shipments inadvance of second quarter requirements, as well as the impact of key strategies,including the new market calendar and replenishment. The majority of autumn/winter product shipments continue to be concentrated in the second quarter ofeach financial year. Burberry continues to anticipate a mid-teens percentageunderlying increase in first half wholesale sales relative to the previous year. In conjunction with a local partner, the Group opened a franchise store inMexico City during the quarter. Licensing Total licensing revenue in the quarter increased 6% underlying. In Japan,revenue increased moderately on gains from ongoing licences. Product licencesproduced solid gains led by eyewear. Exchange rate differences between reportingperiods, primarily yen, resulted in a 3% reported decline in licensing revenuefor the quarter. Burberry continues to expect broadly flat underlying licensingrevenue relative to 2006/07 for the full financial year. Operations In advance of the planned 2008 headquarters relocation, Burberry completed thesale of its central London building during the quarter. Inclusive of one-timecosts associated with the move, the Group expects to record a net pre-tax gainof approximately £15 million associated with the transaction in the 2007/08financial year. Burberry will provide a first half trading update on 16 October and releaseinterim results for the six months to 30 September on 14 November. Enquiries: Burberry 020 7968 0577Stacey Cartwright CFOMatt McEvoy Strategy and IR Brunswick 020 7404 5959David YellandLaura CummingsRobert Gardener The financial information contained in this Trading Update has not been audited. Certain statements made in this Trading Update are forward looking statements.Such statements are based on current expectations and are subject to a number ofrisks and uncertainties that could cause actual results to differ materiallyfrom any expected future results in forward looking statements. This announcement does not constitute an invitation to underwrite, subscribe foror otherwise acquire or dispose of any Burberry Group plc shares. Pastperformance is not a guide to future performance and persons needing adviceshould consult an independent financial adviser. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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