British luxury group Burberry reports increased revenues in the first quarter of its financial year, aided by strength in Asia and the Americas.
Sales on a comparable basis gained 12 percent to £370 million ($633 million, €464 million) in the three months to June 30, compared with a year earlier, the London-listed firm said in a trading update.
Burberry enjoyed double-digit sales growth in Asia Pacific, led by mainland China and Hong Kong, and also in the Americas region.
“This first quarter performance reflects our focus on striving to give customers the best possible experience of the Burberry brand through ongoing investment in retail, digital and service, both on and offline,” said chief executive Christopher Bailey in the statement.
On a downbeat note, Burberry warned that adverse foreign exchange rate movements would weigh more heavily than expected. If exchange rates remain at their current levels, Burberry added that it expects to take a hit of £55 million on its retail and wholesale profit for the full financial year. That was higher than the previous estimate of £40 million that was given in May.
“The health of the business remains strong, but currency headwinds have increased,” said chief financial officer Carol Fairweather. “As we continue to grow the business globally, the FX (foreign exchange) impact in (fiscal year 2015) will be bigger, too.”
Bailey took over the company’s previous long-serving chief executive Angela Ahrendts in May. Ahrendts departed after eight years at the helm to become retail boss at US technology giant Apple.
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