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London - British luxury brand Burberry posted a 14% rise in underlying retail revenue in the Christmas quarter, though it cautioned that at current levels, exchange rates will be a significant headwind in the balance of its second half.
The 158-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, said on Wednesday it made £528m of retail revenue in the three months to 31 December.
That compared to analyst's average forecast of £520m in the same period last year and first half growth of 17%.
Retail portfolio
Comparable store sales rose 12%, compared to 13% in the first half, reflecting double-digit growth in Asia Pacific; and mid to high single-digit growth in the Americas and EMEIA (Europe, Middle East, India and Africa) divisions.
Chief executive Angela Ahrendts said: "This performance reflects continuing strong brand momentum and our team's intense focus on retail execution, supported by a planned increase in investment in marketing, customer service offline and online and our retail portfolio."
Shares in Burberry have fallen 7% since 15 October when it said Ahrendts will step down in mid-2014 to take up a job at Apple and hand over to creative director Christopher Bailey, but are still up 11% over the last year.
They closed at 1,469 pence on Tuesday, valuing the business at £6.49bn.
Slowdown
The jury is still out on whether sales growth in the luxury goods industry this year will match, drop or slightly outpace the 10% rise recorded last year at constant currencies.
Analysts at Bank of America Merrill Lynch and HSBC are forecasting a slight slowdown to 9% while others are expecting growth of 11%.
Luxury investors are closely monitoring any signs of recovery in China, the industry's former principal engine of growth, hampered by an economic slowdown and the government's crackdown on conspicuous consumption.
