In the first half, total revenue increased by 14% underlying, with retail growth of 17%, wholesale down 7% and licensing up 2% (both adjusted for Beauty). Adjusted PBT for the six months to 30 September 2013 is now expected to be around the level of the prior year, better than previous guidance of down year-on-year. The recent appreciation of sterling, if it persists, will impact the translation of second half revenue and profit.
Highlights:
Retail revenue £694m, up 17% underlying
- 13% comparable store sales growth
- Double-digit in Asia Pacific and EMEIA; high single-digit in Americas
- Online continued to outperform in all regions
- Outerwear and large leather goods drove half of mainline growth
Retail
Retail sales in the first half increased by 20% at reported FX and 17% at constant FX. Of this 17%, comparable store sales growth was 13% (in both the first and second quarters), with the balance from new space.
By region in the first half, there was double-digit comparable store sales growth in Asia Pacific and EMEIA and high single-digit growth in the Americas. Mainland China delivered high single-digit comparable growth in the second quarter.
In part reflecting more Chinese travelling luxury customers, the rest of Asia accelerated through the half and European flagship markets saw a higher proportion of tourist transactions. Footfall remained soft offline but grew online, while conversion improved in both. Sales via iPads in store and “order on line, collect in store” both performed strongly as consumer behaviour continued to evolve.
In mainline, outerwear and large leather goods again drove about half of the growth and mens tailoring continued to outperform, all driving average selling price. Mens accessories also grew strongly.
During the first half, Burberry opened 14 mainline stores and closed eight. Store openings included a net two in China and one additional store in each of Brazil, Mexico and India as the group continued to invest in high potential markets.
