Burberry sales rise as women splash the cash

Upmarket retailer Burberry has reported first-half turnover is up 13% and ahead of expectations, as womenswear in particular showed strong sales.

Analysts had anticipated sales for the six months to the end of March to grow about 11%.

The London-based group, which has revamped an 80-year-old plaid design by putting it on products from hand bags to bikinis and getting Kate Moss to front advertisement campaigns, said second-half sales rose on higher demand for women's clothing and new stores.

"In particular, the outstanding response to our womenswear designs and use of color throughout the product lines was a key catalyst across the business," said chief executive Rose Marie Bravo.

Looking ahead, the company said they are happy with the current analyst's full-year earnings before interest, taxation and amortisation forecasts for the full year to March 2004.

"From what I can see, people seem to be in the range for EBITA between £136-£140m (€206m - €212m) and I would not be looking to move people off that," a Burberry spokeswoman said today.

Growth was led by the US market and helped by gains in Europe and expansion in Asia's younger markets.

In the first half the group ventured into new markets, opening the first Burberry store in Moscow in February, through a local partner.

For the 2004/2005 financial year, Burberry plans to increase net retail selling space by approximately 8%.

The 150-year-old company is set to announce its results for the year ended March 2004 on May 24.