Burberry Group Confirms Full-Year Outlook

Shares of Burberry Group (BRBY.L), the British fashion house, jumped early on Tuesday after the group confirmed its outlook for the fiscal full year 2020, saying that new products from its Chief Creative Designer Riccardo Tisci — formerly with Givenchy — elicited an “excellent” response from Asian customers.

The London-based firm said in a trading update for the first quarter that ended June 28 that retail sales rose to 498 million pounds ($624.6 million), from 479 million pounds a year ago, with new collections delivering “strong” double-digit growth compared with prior-year equivalent collections, in line with its expectations.

Comparable sales jumped by more than 4% as the share of new products rose to about 50% of the group’s offer in mainline stores by the end of the quarter, versus 10%-15% in March.

Sales rose as Asia-Pacific reported a high single-digit increase on the back of mainland China up mid-teens. While tourist -spend supported low-single-digit growth in Europe, the Middle East and Africa, revenue from the Americas was flat mainly because of a “negative” impact of a markdown period in Canada.

Fiscal 2020 is the second year of Burberry’s multi-year transformation plan as part of which the proportion of new products in the stores was pushed to “meaningful” in the first quarter. In distribution, 23 retail stores adopted Tisci’s new creative vision and nine of the 38 smaller, non-strategic stores were closed. Meanwhile, in wholesale, the firm continued to rationalize space in the non-luxury US category.