Burberry second half revenue up 18%

Burberry Group plc, the global luxury company, on April 17

reported on trading for the six months to 31 March 2012. The company generated total revenues of £1,027m, up 18%. Its wholesale revenue is £230m, up 7%. Licensing revenues are £54m, up 5%.

Its retail sales, which accounted for 72% of total revenue in the second half, grew by 23% on an underlying basis (up 25% at reported FX). Comparable store sales in the half increased by 12% (Q3: +13%; Q4: +11%). The UK, France and Greater China remained strong, especially in flagship markets. In mainline, average retail selling price was again the key driver of sales growth, helped by greater penetration of Burberry London in both women’s and men’s apparel. Knitwear, men’s tailoring and accessories grew strongly, as did fragrance and watches.

Wholesale revenue in the second half increased by 7% at constant and reported FX, compared to guidance of mid single-digit percentage growth. Growth was impacted by the planned shift from wholesale to retail in Saudi Arabia and Spain and further rationalisation of the brand’s distribution in the United States and Europe. Excluding these actions, there was double-digit percentage growth in emerging markets.

Total licensing revenue in the second half increased by 5% on an underlying basis (up 10% at reported FX), consistent with full year guidance. Japanese license income was slightly down in the half, largely reflecting the planned termination of certain non-apparel licenses. There was excellent growth from the three global product licenses (fragrance, watches and eyewear), led by the new Burberry Body fragrance and current season watch collections. At 31 March 2012, Burberry had 192 retail stores, 208 concessions, 44 outlets and 57 franchise stores.