Business

Burberry revenues see strong growth

Burberry show summer 2011
Image caption Burberry says its brand still has "global momentum"

Fashion retailer Burberry has reported a 30% rise in revenues in the past six months, after enjoying strong growth in all of its markets.

Revenues at the group - best known for its red, black and camel check design - hit £830m for the six months to 30 September.

Like-for-like retail sales - which ignore new store openings - rose 16%.

Burberry added that its Chinese stores had seen same-store sales growth of 30% in the past six months.

'Blistering' growth

Despite the rapid pace of growth the company's shares were down almost 2% in morning trading with investors concerned about the sustainability of expansion in developing markets, like China.

Since the start of July, Burberry shares have fallen by 20%.

Many luxury goods companies have been reaping the benefit of the developing world's rapid economic growth, which some economists think is unsustainable.

But Burberry, which has been making raincoats and handbags for 155 years, said there was no sign of a slowdown yet.

"Our first half performance, with 30% revenue growth, clearly demonstrates the continuing global momentum of the Burberry brand, underpinned by consistent and balanced double-digit growth in retail and wholesale, all regions and all product categories," said chief executive Angela Ahrendts.

However, she added that Burberry was "fully prepared to act appropriately" should there be any significant change in luxury demand.

Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers, said the recent stock market falls had been overdone: "Revenue growth continues at a blistering pace, despite recent markdowns of the stock given a potential Chinese slowdown."

He said expansion plans could hold back profits but added: "Burberry remains a rare example of burgeoning retail growth."

The company currently has 187 retail stores, 210 concessions, 44 outlet shops and 52 franchises.

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