Burberry Beats Estimates, Sales Rise 21 Percent

October 12 00:00 2011

New York, October 12 (RainbowNewsLine.com) – Burberry Group Plc has posted a 21% rise in sales for the quarter ended Sept. 30 that saw its revenues rise to 463 million pounds ($722 million) from 382 million pounds a year earlier. The fiscal second-quarter sales beat analysts’ estimates. This performance showed that demand is not lagging and as such Burberry is planning to add 15 percent to its average retail space.

About 10 stores are planned to be opened in the second half of the fiscal year, including outlets in China, Latin America and Paris by the London-based largest luxury-goods maker of UK. Although there are concerns regarding stagnation in China’s growth, Burberry’s first-half sales in Asia-Pacific rose 52 percent.

Seymour Pierce analyst Freddie George wrote in a note today that “Burberry’s long-term growth story remains intact operating in a market with strong long-term growth credentials.” He recommends purchase of its shares.

Having rebounded 16 percent in the past six business days, Burberry dropped 29 pence, or 2.3 percent, to 1,235 pence at 8:28 a.m. in London trading. In the last three months, the shares have fallen 13 percent giving Burberry a market value of 5.5 billion pounds. Its retailing revenue rose 44 percent in the quarter mainly because of its acquisition of its operations in China last year and sales of outerwear and large leather-goods.