LONDON, United Kingdom — Burberry Group Plc, the U.K.’s largest luxury-goods maker, reported first-quarter revenue that beat estimates as digital marketing initiatives drove sales of apparel and accessories in Asia and the Americas.
Retail revenue rose 9 percent to 370 million pounds ($635 million) in the three months through June, London-based Burberry said today in a statement. Analysts predicted 354 million pounds, according to the median of 15 estimates. Excluding currency fluctuations, sales climbed 17 percent.
Investment in initiatives such as click-and-collect, which allows shoppers to order products online and pick them up in stores, have helped Burberry outperform its peers even as the pound’s strength and softer tourist demand in Europe weigh on growth. The maker of $30 lipstick and $995 trenchcoats is the first European luxury company to report sales for the quarter.
“We remain confident of delivering sustainable, profitable growth into the future,” Christopher Bailey, Burberry creative head and chief executive officer, said in the statement.
Bailey, who added the CEO’s role in May, faces investor opposition to his proposed 10.3 million-pound pay package, plus stock awards. The Investment Management Association has issued its second-most serious alert on Burberry’s pay policies ahead of tomorrow’s annual general meeting, an IMA spokeswoman said.
Total comparable sales increased 12 percent, Burberry said.
By Andrew Roberts; Editors: Celeste Perri, Paul Jarvis, Kim McLaughlin