Burberry plc reports first quarter trading update ending June 30, 2013. Highlights for the three months to 30 June 2013
- Retail revenue £339m, up 18% underlying - Comparable store sales up 13%, in line with our expectations for the quarter - Driven by exceptional performance of Spring/Summer 2013 fashion - Facilitated by investment in digital - Growth broad-based by product and region offline and online -Further strategic and operational progress - Opened seven mainline stores, including two in Shanghai flagship market - Online commerce integrated into regional infrastructure - Burberry Kisses launched in partnership with Google - Integration of Beauty division on plan
No change to guidance
- Plan is to modestly increase normalised retail/wholesale margin in full year - First half adjusted PBT still expected to be below prior year
Angela Ahrendts, Chief Executive Officer, commented:
“We are pleased with our first quarter retail performance. Spring/Summer 2013 was a standout season driven by innovative marketing, cohesive monthly fashion groups and exceptional execution from all corporate and regional teams.
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.”
Underlying change is calculated at constant exchange rates. Certain financial data within this announcement have been rounded.
In line with the modification of disclosure previously announced, Burberry today updates on retail revenue for the first quarter.
Retail
At £339m, retail sales in the small first quarter increased by 21% at reported FX and 18% at constant FX (Q1 2012: £280m). Of this 18%, comparable store sales growth was 13%, with the balance from new space.
In what remained an uneven trading environment, there was an exceptional consumer response to Spring/Summer 2013, helped by cohesive monthly fashion groups and record reach and engagement generated by the advertising campaign and runway shows. Consistent product strategies drove growth in mainline, with outerwear and large leather goods accounting for over half the growth, mens accessories and tailoring outperforming and Prorsum and London again increasing penetration. Reflecting changing consumer behaviour, footfall was soft offline but grew strongly online. Conversion rates improved again.
By region, there was double-digit comparable store sales growth in Asia Pacific and the Americas and high single-digit growth in Europe, Middle East, India and Africa (EMEIA), the newly formed region integrating Europe and Rest of World. Offline, growth was led by Hong Kong and China, while France and Germany remained robust and Korea showed early signs of improvement. Online performed strongly globally, benefiting from full integration into the regional infrastructure.
During the first quarter, Burberry opened seven mainline stores and closed six. Openings included two stores in Shanghai, a third store in Mexico and relocation in Frankfurt.
