EXTRA: Burberry Beats Expectations As First-Quarter Sales Grow

  • EXTRA: Burberry Beats Expectations As First-Quarter Sales Grow

EXTRA: Burberry Beats Expectations As First-Quarter Sales Grow

Mr Gobbetti said: "We are pleased with our performance in the first quarter, while mindful of the work still to do".

But Odeluga noted that new chief executive Marco Gobetti, who replaced Christopher Bailey on 5 July, had stated Burberry still had work to do in its overhaul of the business.

The news comes despite an uptick in sales, with a better-than-expected like-for-like sales rise of four percent for the first quarter ending June 30 - thanks to the weakened pound driving sales both in the United Kingdom and in China.

Retail revenue for the three months to 30 June 2017 was up 3 per cent at an underlying level to £478m.

"I'm really looking forward to partnering with [Mr Bailey] and building Burberry's future on the strong foundations that have already been set", he said.

Sales in the EMEIA region grew high single-digit with continued strength in the United Kingdom, with a deceleration towards the end of the quarter. Some areas of Continental Europe, such as Italy, were weaker however, while Burberry said the Middle East remains "challenging".

But in a trading update yesterday, Burberry's chief operating and financial officer Julie Brown said the company would not be pursuing the site for development.

The global retail chain first announced plans to build a new Leeds factory in November 2015, with plans to replace its current sites at Castleford, West Yorkshire, and Cross Hills, North Yorkshire, and moving all 800 of its employees to the new site. On an underlying basis sales grew by 3%, while like-for-like sales increased by 4%.

Burberry said overall growth was led by product innovation, with a strong performance from Burberry's Tropical Gabardine trench coat, the DK88 handbag, and leather goods. The total underlying licensing revenue for FY 2018 is still expected to be up by approximately 20 per cent year-on-year including the impact of beauty. Operationally, the company also performed well, as it's on track to deliver £50m of cumulative sales by the year end.

Other risks to the industry include drastic political changes, pricing pressures, brand value, management execution and successor issues, perception in the equity market about long term growth and foreign exchange rates.