Page last updated at 13:16 GMT, Tuesday, 14 October 2008 14:16 UK

Burberry sales resilient for now

Sales at Burberry are up despite the economic downturn

Luxury brand Burberry has reported strong sales despite the economic downturn that has hit many retailers.

The group saw a 13% rise in revenue for the six months to 30 September to 539m, ahead of analysts forecasts of between 510m to 529m.

Like-for-like sales growth slowed however, from 4.5% in the first quarter to 2.5% in the second quarter.

In light of the slowing growth, the company warned that future trading was difficult to forecast.

Stacey Cartwright, the company's chief financial officer, said: "With the volatility that the markets are seeing, there's a bit of an uncertain outlook."

Spain, where Burberry has historically operated as a middle-to-upmarket rather than a luxury brand, remained the company's weak spot, with sales down 20%.

Luxury brands have held up surprisingly well despite the economic slowdown. Last week, LVMH, the world's biggest luxury group and owner of the Louis Vuitton and Moet & Chandon brands, reported healthy sales growth.

However, such resilience could be tested should recession bite. Richemont, another giant in the luxury goods industry with interests in brands such as Cartier and Montblanc, warned last month that it was starting to feel the pinch in the US.

Handbags drive Burberry's growth
28 May 08 |  Business
US retailers report dismal sales
08 Oct 08 |  Business

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