Burberry revenue rise driven by new product

The luxury business recorded an increase in retail revenue of over 3% to £498m on a reported currency basis in the 13 weeks to June 29.

The retailer also recorded a 4% increase in comparable sales, which it said was down to growth led by new product.

As a result of what the retailer called a “positive” first quarter of trading, it maintained its full-year guidance at around £120m.

Burberry praised the “excellent consumer response” to a range of new collections by designer Riccardo Tisci which it said delivered “strong double-digit percentage growth” year on year.

The retailer said the proportion of new product it offered in stores had increased over the period by “around 50%”.

In Europe, Burberry reported “low single-digit growth supported by tourist spend”, which it said “particularly benefited the UK”.

In terms of international markets, the luxury brand reported growth in Asia Pacific, driven mainly by sales in China, but reported that sales in the Americas were flat.

Sales of both men’s and womenswear were up, but accessories were down.

Burberry boss Marco Gobbetti said: “This was a good quarter in our multi-year journey to transform Burberry. We increased the availability of products designed by Riccardo, while continuing to shift consumer perceptions of our brand and align our network to our new creative vision.

“The consumer response was very promising, delivering strong growth in our new collections. We are on track with our plans and we confirm our outlook for FY 2020.”