Burberry’s sales growth slows

By DOMINIC JEFF
Published on 11/10/2012 10:42

Fashion house Burberry saw its once stellar sales growth almost disappear in the last quarter as the negative economic climate took its toll on wealthy shoppers.

But shares in the firm jumped more than 8 per cent this morning after it reported an uplift in recent weeks. Its 1 per cent like-for-like sales growth in the three months to September was also slightly better that a previous warning had suggested.

Revenue for its financial first half was £883 million, up 8 per cent on an “underlying” basis, driven by retail sales. It said despite a lower footfall in its shops, those who were buying were spending more.

Chief executive Angela Ahrendts said: “Against record prior year comparatives, Burberry delivered 8 per cent total revenue growth and 10 per cent retail growth in the first half, albeit slowing in the second quarter.

“In a more challenging external environment, footfall declined but brand momentum remained strong, particularly with our higher spending luxury consumer.”

Analyst Bethany Hocking, at Investec, said the figures implied sales growth picked up to around 4 per cent in the last three weeks of the period.

She said: “After a profit warning last month, today’s first half pre-close [update] was crucial, and our overall feeling is one of slight relief.”