The biggest UK luxury-goods manufacturer – Burberry Group Plc made a statement today, posting its revenue over the first fiscal quarter, that surpassed the median analysts forecast due to successful digital marketing initiatives, which increased the companys sales.
The Chief Executive Officer of the company – Mr. Christopher Bailey, who is also Burberrys creative head said in the statement, which was cited by Bloomberg: “We remain confident of delivering sustainable, profitable growth into the future.”
According to the statement of Burberry Group Plc, the companys retail revenue increased by 9% and reached 370 million pounds (635 million dollars) over the fiscal quarter ended June, in comparison to the 339-million-pound revenue posted for the same period a year ago. This result surpassed the initial analysts forecasts of 354 million pounds. Burberry also said that its sales excluding currency shifts rose by 17%. The company revealed that its same-store sales rose by 12% in the first financial quarter, which is slightly lower than the 13% reported over the same quarter in 2013.
The incoming Finance Director of Burberry Group Plc – Ms. Carol Fairweather commented on the companys performance, saying that the successful results were benefited by strong fashion sales and recovered customers demand in China. There was a slowdown on the Chinese market in 2013, which has been considered the main reason for the U.K.-based company to make a profit warning.
According to Ms. Fairweathers statement, the companys the performance of its coats, jackets and large leather bags was successful. As reported by the Financial Times, Ms Fairweather said: “All of this combined to help deliver this performance”, talking of the overall performance of the U.K. company over the first quarter.
Burberry Group Plc was adding 2.26% to trade at 1,451 pence per share by 12:16 GMT, marking a one year change of -3.84%. According to the information published on the Financial Times, the 19 analysts offering 12-month price targets for Burberry Group Plc have a median target of 1,560, with a high estimate of 2,147 and a low estimate of 900.00. The median estimate represents a 9.70% increase from the last price of 1,422.
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