British luxury group Burberry Group Plc (BRBY.L) reported Tuesday a 15 percent growth in underlying revenues for the fourth quarter ended March 31. For the second half, underlying revenue growth was 18 percent.
Angela Ahrendts, chief executive officer of the company said, "Looking ahead, while we remain vigilant about the external environment, our global teams continue to focus on optimising our core brand, digital and cultural initiatives, while investing to drive sustainable, profitable growth."
In a trading update, the company said its total revenues for the fourth quarter, on a reported basis, increased 16 percent to 453 million pounds. For the half year, reported revenues were 1.03 billion pounds, up 19 percent from 877 million pounds in the prior year.
Retail revenues, which accounted for 72 percent of total revenues, improved 25 percent in the second half to 743 million pounds from 596 million pounds in the prior year. Underlying, or at constant exchange rates, revenue growth was 23 percent. Comparable store sales in the half year increased 12 percent from the preceding year.
Wholesale revenue rose 7 percent on both a reported and underlying basis year-over-year to 230 million pounds. Licensing revenue were 54 million pounds, up from 50 million pounds reported a year ago.
In Asia Pacific, revenues grew 37 percent, and the growth was 11 percent in Europe. In the Americas and Rest of World revenues were up 7 and 27 percent, respectively.
During the second half, Burberry opened 11 mainline stores and closed six and expects to open about a net 15 mainline stores in Retail in fiscal 2013.
Looking ahead to the first half ending September 30, 2012, the company anticipates underlying wholesale revenue to increase by a mid single-digit percentage.
For the fiscal ending March 31, 2013, Burberry expects licensing revenue at constant and reported exchange rates to be broadly unchanged year-on-year.
BRBY.L is currently trading at 1,513 pence, down 73 pence or 4.6 percent, on a volume of 1.33 million shares on the LSE.
by RTT Staff Writer
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