Burberry checks out plan for 10% sales space expansion

Published on Monday 18 April 2011 22:45

British fashion house Burberry has unveiled plans to expand its store space by more than 10 per cent after a bumper finish to its financial year.

The 155-year-old maker of raincoats and handbags yesterday reported a 32 per cent surge in revenues to 390 million in the three months to March, which it said would result in full-year profits being at the top end of expectations.

The group - best known for its camel, red and black check - said it would increase average retail selling space by as much as 13 per cent in the financial year to March 2012, mainly in China, Latin America and the Middle East.

Burberry and the wider luxury goods sector have experienced a more rapid recovery than the rest of the retail industry, driven by demand from Chinese shoppers and tourists.

Katharine Wynne, an analyst at brokerage Investec, said Burberry's expectations of full-year profits to March at the top end of expectations implied a figure of 290m.

She added there was also scope to revise upwards the firm's forecast for the year to March 2012.

Burberry's better-than-expected figures came a day after LVMH, owner of Louis Vuitton handbags, beat Q4 forecasts.