LONDON (dpa-AFX) - Burberry Group Plc. (BRBY.L) reported that its retail revenue for the first-quarter ended 30 June 2017 was 478 million pounds, up 3% on underlying basis or up 13% at reported FX. Comparable sales were up 4%. Timing of store footprint changes in the quarter resulted in lower average space year-on-year, reducing revenue by 1%.
The company noted that it completed remaining 50 million pounds of initial share buyback, 300 million pounds programme to be completed in fiscal year 2018.
In Retail, Burberry will focus in fiscal year 2018 on productivity from its current store footprint therefore no material contribution from net new space is expected.
In Wholesale, Burberry now expects total underlying wholesale revenue in the first half of fiscal year 2018 to be broadly flat compared to 287 million pounds last year reflecting little business disruption for Beauty. Excluding Beauty, underlying wholesale revenue in the first-half of 2018 is still expected to be broadly unchanged year-on-year.
For the second half of fiscal year 2018 Burberry currently expects underlying wholesale revenue, excluding Beauty, to be down due to brand control.
Licensing: Total underlying licensing revenue for fiscal year 2018 is still expected to be up about 20% year-on-year including the impact of Beauty.
Guidance for fiscal year 2018 adjusted PBT at constant exchange rates is maintained. At 30 June effective rates, the expected impact of year-on-year exchange rate movements on FY 2018 reported adjusted PBT is around 25 million pounds adverse compared to previous guidance for 30 million pounds adverse at 28 April effective rates.
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