суббота, 15 сентября 2012 г.

Coats and leather goods help Burberry profits leap 21%.(Sport)(Financial report) - Western Mail (Cardiff, Wales)

FASHION house Burberry yesterday revealed a 21% rise in half-year revenues as customers snapped up coats and leather goods.

The company, which took centre stage at the recent London Fashion Week, said it continued to build momentum with strong performances in markets including Hong Kong, the UK, Italy and France.

It is also targeting more of the Chinese market after recently agreeing a pounds 70m deal to buy out its franchise partner in the country.

The company's retail division posted sales growth of 22% in the second quarter, up from 16% in the first quarter after the addition of new space and the transfer of the Chinese operations.

Same-store sales rose 8% in the quarter, down from 10% in the previous three months, with outerwear and large leather goods accounting for half the growth. Shoes, childrenswear and its Prorsum collection also did well.

Burberry chief executive Angela Ahrendts said the firm expected profits for the full year to be in the top half of market expectations.

She added that new products, online and customer service initiatives and the Chinese expansion were underpinning confidence.

Burberry expects to boost its selling space by 25% in the second half of the financial year, mostly in China with acquired stores and new openings. It has 164 retail stores and more than 150 concession outlets worldwide. Shares fell 2% yesterday as investors took profits after a strong run for the FTSE 100 Index company in recent weeks.

Investec Securities increased its forecast for full-year profits by 4% from its previous guidance for a figure of around pounds 255m.

Analyst Katharine Wynne told investors: 'Whilst temptation must be to lock in some profit after the very strong run Burberry has enjoyed over the past quarter, we continue to find the global growth profile highly attractive.'