Fashion brand Burberry's total net revenue jumps 10%
12 Oct '06
3 min read
Wholesale Wholesale sales accounted for approximately 46 percent of total revenue in the first half.
Underlying wholesale sales increased 1 percent. In the context of good external demand, production delays in outerwear and a core handbag group constrained growth in the half. Reported wholesale sales were also affected by the Taiwan acquisition and Spain retail conversion, resulting in a 5 percent reported decline in the period.
The US market experienced a moderate decrease primarily as a result of shipping delays. In Spain, the ongoing challenges of the specialty store channel produced a moderate underlying sales decline during the period.
Licensing Total licensing revenue in the first half increased 5 percent on an underlying basis, 3 percent reported. In Japan, volume gains among ongoing licenses were offset by the effect of licence terminations, resulting in a moderate underlying decline in revenue. Good growth in product licence revenue was led by fragrances, which benefited from the successful launch of Burberry London for women in Spring 2006 and the men's fragrance in Autumn 2006. Watches also continued to maintain good progress in the period.
Second half outlook Retail. Burberry has accelerated its retail expansion programme for the year. The Group plans to open nine Burberry stores, a net 10 concessions andfour outlets in 2006/07 resulting in an expected 13 percent increase in average retail selling space for the financial year (excluding the effects of the Taiwan acquisition and Spain retail conversion).
marketing@alchempro.com
