LONDON — Burberry’s revenues rose 10 percent at actual exchange rates in the six months to March 31 to 1.42 billion pounds, or $2.2 billion, rising 9 percent at constant exchange rates.
Contributing to the gain was double-digit growth in retail sales in the Americas and EMEIA (Europe, Middle East, India and Africa) regions, along with demand for the British label’s trench coats and scarves.
All dollar figures are calculated at average exchange rates for the period.
Retail revenues during the period rose 14 percent at actual exchange rates to 1.06 billion pounds, or $1.64 billion. The firm noted that the Americas had seen double-digit same-store sales growth over the half, with a “strong performance” in the U.K., France and Italy, driven both by domestic and traveling customers. In terms of retail and wholesale sales, the Americas rose 18 percent at actual exchange rates to 378 million pounds, or $586 million in the half.
By contrast, Burberry logged low single digit same-store sales growth in the Asia-Pacific market, with China and Korea up by only a “mid single digit percentage,” the label said, and a single-digit decline in same-stores in Hong Kong, a high-margin market for Burberry.
Wholesale sales fell 1 percent at actual exchange rates and were unchanged at constant exchange rates at 331 million pounds, or $513 million. The company blamed “cautious” ordering from wholesale customers in Europe and Asia.
In the half, wholesale beauty sales rose 8 percent on an underlying basis to 100 million pounds, or $155 million, contributing to wholesale sales of 175 million pounds, or $271 million, for the year. Burberry’s combined retail and wholesale beauty sales for the second half rose 9 percent at actual exchange rates to 106 million pounds, or $164 million.
Christopher Bailey, Burberry’s chief creative and executive officer, called the results “a robust second half performance, despite an uncertain external environment.
“We anticipate external challenges will continue in the current year, but remain confident in our long-term strategy to build the Burberry brand and business globally,” he added.
Burberry is to report its results for the year ending March 31 on May 20.