Underlying licensing revenue to decline by 10-15% at Burberry
15 Jul '09
3 min read
Excluding these actions and closures, first half wholesale revenue is planned down around 15% at constant exchange rates as wholesale customers adjust their inventory levels in line with current sales trends. Spain remains challenging.
A further three franchise stores were opened in the quarter in Emerging Markets, including the first Burberry store in Bahrain. China continues to perform strongly, while Russia and parts of the Middle East remain difficult.
Licensing Total licensing revenue in the first quarter declined by 3% on an underlying basis (up 12% reported), benefiting from timing differences in royalty receipts, mainly in Japan. In the year to March 2010, Burberry still expects underlying licensing revenue to decline by between 10% and 15%, although reported licensing revenue should increase year-on-year reflecting currency benefits.
Financial condition Except for the trading activities described above, there has been no significant change to the financial condition of the company.
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