British fashion house Burberry Group posted a 19 percent rise in second-half revenue on Tuesday despite tougher conditions and said it expected growth for its products, particularly in North America. Shares in Burberry, known for its camel, red and black check design, rose over 12 percent in early London trade.
Britain's largest luxury fashion brand, Burberry said total sales on a reported basis to end March rose 19 percent to 546 million pounds ($1.08 billion). Sales were up 18 percent on an underlying basis, using constant exchange rates. "Burberry had a good finish to the year, against the background of an increasingly challenging external environment," Chief Executive Angela Ahrendts said in a trading statement. The firm, best known for its trench coats which sell for around $1,500, said retail sales grew by 17 percent on both an underlying and reported basis.
Wholesale revenue rose by 25 percent on an underlying basis and 28 percent on a reported basis, "in line with our guidance". Analysts at Kaupthing said the "positive outlook statement points to a strong finish to the year". A survey on Tuesday showed British like-for-like retail sales fell in March for the first time in two years and at the sharpest pace in nearly three years, in a sign consumers are feeling the impact of the credit crunch. Burberry said it expected wholesale revenue in the six months to September 2008 to increase by around 10 percent on an underlying basis.
On the retail side, the company said in the year to March 2009 it expected average selling space to increase by 12-13 percent year-on-year, including around 15 mainline store openings. "While Spain is expected to show further weakness, this will be countered by good growth in all other regions, especially North America, up by over 20 percent, and emerging markets, as we pursue our strategy of investing in under-penetrated markets," it said.
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