LONDON, United Kingdom — British luxury brand Burberry reported a 3 percent rise in underlying sales in its first quarter, showing growth in line with forecasts ahead of the launch of the first collection from its new designer Riccardo Tisci in September.
Tisci, a former Givenchy star, was appointed in March as the successor to Christopher Bailey, who helped turn the British trench coat maker into a global brand.
Burberry's chief executive Marco Gobbetti is repositioning the company in a higher luxury segment, and has a plan to catch up with faster-growing luxury goods rivals. He has warned there will be little growth in revenue and operating profit while the plan is implemented.
The company said in its statement on Wednesday that there was no change to guidance at constant exchange rates, adding that it was benefiting from an easing of currency headwinds, and was on track to deliver cost savings of £100 million ($132.6 million).
For the 13 weeks to June 30, Burberry said its retail revenue came in at £479 million, broadly flat on what it made in the same period last year, driven by higher sales growth in the Americas and continued Chinese demand for its heritage trench coats, rainwear, handbags and other products.
Sales in its Europe, Middle East, India and Africa region, however, declined, due to softer tourist demand in the UK and Continental Europe.
Shares in Burberry have increased 17 percent so far this year.
By Sarah Young, editor: James Davey.