Check it out: Burberry sees sales surge to more than £1bn

LUXURY goods group Burberry yesterday announced that second-half sales rose 18 per cent to £1.03 billion, driven by continued demand in key markets including China, France and the UK.

The British firm said retail revenues, which now account for nearly three-quarters of group sales, rose 23 per cent to £743 million, thanks to strong sales of knitwear, men’s tailoring and accessories, fragrances and watches. However, sales growth slowed in the final quarter of the year, with underlying revenues rising 15 per cent to £453m in the three months to the end of March, compared with a 21 per cent increase in sales during the third quarter.

Despite the easing, the second-half update was broadly in line with City expectations, and Keith Bowman, equity analyst at Hargreaves Lansdown, said: “Burberry’s luxury brand status remains undiminished, with the Queen’s Diamond Jubilee celebrations potentially providing a boost.”

Burberry said it planned an increase of between 12 and 14 per cent in average retail selling space in the current financial year, with growth weighted towards larger stores.

Chief executive Angela Ahrendts said: “With underlying revenue up 18 per cent in the second half, we are pleased with Burberry’s finish to the year across all channels, regions and product divisions.”