British fashion group Burberry posted unexpectedly strong third-quarter revenue today as it reaped the benefits of new stores and healthy Christmas sales.
Burberry's retail division grew an impressive 32 per cent on an underlying basis, excluding the effects of currency movements and store acquisitions in Asia.
About half of this underlying growth came from new store openings, and half from growth in existing stores. New Burberry stores in the third quarter, included outlets in New York and London. The company indicated it was comfortable with forecast profit before exceptionals of about £109 million (€175 million).
The poor weather during the period came also helped sales. Trademark Burberry items include raincoats and accessories such as umbrellas. Gift items such as watches, scarves and ties had also fared well over the Christmas season.
Licensing revenue, principally from Asia, increased by 9 per cent on the quarter despite a stagnant Japanese economy.
Burberry said the fear of conflict in Iraq had begun to hit travel flows and, although tourist sales only account for about a quarter of the company's business, it might take a couple of seasons for sales to recover from the impact of a war.