Fashion brand Burberry total revenue rise 30% in Q1
11 Jul '07
3 min read
Wholesale: Wholesale sales accounted for approximately 33% of total reported revenue in the quarter.
Wholesale sales increased 51% underlying, 47% reported. In this typically small wholesale quarter, the gain partially reflected the acceleration of shipments in advance of second quarter requirements, as well as the impact of key strategies, including the new market calendar and replenishment. The majority of autumn/winter product shipments continue to be concentrated in the second quarter of each financial year. Burberry continues to anticipate a mid-teens percentage underlying increase in first half wholesale sales relative to the previous year.
In conjunction with a local partner, the Group opened a franchise store in Mexico City during the quarter.
Licensing: Total licensing revenue in the quarter increased 6% underlying. In Japan, revenue increased moderately on gains from ongoing licences. Product licences produced solid gains led by eyewear. Exchange rate differences between reporting periods, primarily yen, resulted in a 3% reported decline in licensing revenue for the quarter. Burberry continues to expect broadly flat underlying licensing revenue relative to 2006/07 for the full financial year.
Operations: In advance of the planned 2008 headquarters relocation, Burberry completed the sale of its central London building during the quarter. Inclusive of one-time costs associated with the move, the Group expects to record a net pre-tax gain of approximately £15 million associated with the transaction in the 2007/08 financial year.
Burberry will provide a first half trading update on 16 October and release interim results for the six months to 30 September on 14 November.
marketing@alchempro.com
