* Q1 retail revenue 339 mln stg, up 18 pct
* Comparable store sales up 13 pct
* Still expects H1 adjusted pretax profit below last year
* Plans modest increase in FY retail/wholesale margin
LONDON, July 10 British luxury brand Burberry
beat forecasts for the first quarter with an 18 percent
jump in sales, boosting its shares and allowing it to maintain
its full-year guidance in the face of an otherwise struggling
The 157-year-old seller of raincoats and leather goods,
known for its camel, red and black check pattern, said it made
339 million pounds ($503 million) of retail revenue in the three
months to June 30.
That compared with analysts' average forecast of 316 million
pounds, according to a company poll, and 280 million pounds in
the same period last year.
The 18 percent rise in first quarter underlying retail
revenue was driven by robust demand for spring/summer fashion,
the company said.
Comparable store sales growth was 13 percent, ahead of a
increase of 8 percent in the fourth quarter of the previous
Burberry highlighted "an uneven trading environment" and
said sales of outerwear and large leather goods accounted for
over half the growth, while men's accessories and tailoring
By region, the group saw double-digit comparable store sales
growth in Asia Pacific, driven by Hong Kong and China, and the
Americas and high single-digit growth in the Europe, Middle
East, India and Africa (EMEIA) division.
"Spring/summer 2013 was a standout season driven by
innovative marketing," said Chief Executive Angela Ahrendts.
"Looking forward, the macro outlook remains uncertain and we
will continue to focus our investment on profitable high growth
opportunities by channel, region and product categories."
The group is planning to modestly increase its
retail/wholesale margin in its full year.
Burberry said in May first half profit would be below last
year's as its focus shifts from wholesale markets - sales
through non-Burberry stores - to high-growth Latin American and
Asian retail sales from Burberry branded stores.
The firm has also previously guided to a 10 percent fall in
first half underlying wholesale revenue, reflecting conservative
buying by customers and the firm's strategic rationalisation of
wholesale accounts, particularly in Europe, and of entry price
products, particularly in North America.
Shares in Burberry, up 14 percent over the last three
months, rose another 3.75 percent on Wednesday after the news,
valuing the business at 6.4 billion pounds and helping drive
London's FTSE share index higher.