Burberry posts "robust" first quarter performance

Retail sales increased 14% to £208m, driven by new stores and a strong performance in the UK, France, Germany and Greater China across the three months to June 30.

Burberry opened six new stores in the period and closed two. Comparable store retail sales were up 6%.

Retail sales now account for 70% of the Burberry business, with wholesale and licensing makign up the remainder.

Burberry said sales were boosted as average selling prices increased, through “product innovation” and a higher penetration of its collections Burberry Prorsum and London. It also benefitted from a “rationalisation” of opening price point products in core outerwear and accessories.

The retailer reported its men’s tailoring and non-apparel “performed strongly” alongside new merchandising in soft accessories.

Burberry chief executive Angela Ahrendts said retail sales were boosted by “initiatives to elevate brand equity”.

Ahrendts added: “Building on our balanced business model and strong operational foundation, we continue to invest in our retail, digital and marketing strategies to drive long-term sustainable growth, while remaining responsive to the changing external environment.”

Burberry plans to open flagship stores later this year in London, Milan, Chicago, Hong Kong and Shanghai.