Burberry boosted by Japanese royalties

The Japanese continuing love affair with all things British has boosted maiden results at newly demerged Burberry Group.

The group, which saw total sales up by 12% over the quarter, or 5% on an underlying basis, says revenue from its licences is up by 13%.

It says this is a sign of continued strong growth in the Japanese companies that are manufacturing under the Burberry name.

However it expects such revenue to be impacted over the next few quarters by the weaker yen, and by the licences on some product lines being terminated or brought within its wholesale operations.

Total retail sales for the three months to the end of June increased by 20%, while underying retail sales saw 'double digit' growth.