Burberry, the English luxury company founded in 1856, on Tuesday reported its total revenue increased by 13% on an underlying basis for the first six months of 2008. The Group’s retail revenue was up 14%, due to sales growth of its iconic outerwear and accessories. Commenting on this performance, Angela Ahrendts, Chief Executive Officer, said: “I am pleased with Burberry’s performance in the first half of the year, against the background of an increasingly challenging external environment. The strength of our diversified business model was again demonstrated as we delivered double-digit growth for the fifth consecutive six-month period. While we expect trading conditions in the all-important third quarter to remain volatile and uncertain, we continue to focus on our proven product, regional and channel strategies to drive long-term growth.”

Burberry said Spain remains a difficult market due to low consumer confidence in the poor economic environment. In the first half, total sales in Spain were down 20%. No improvement is planned in Spain wholesale for the second half of the year. Burberry continues to implement a series of initiatives in this market, as discussed at the time of the preliminary results in May 2008.

Operating profit for the first half of the year is expected to be in line with market estimates. A lower percentage of merchandise was sold at full price, impacting gross margin, which was offset by tight control of discretionary expenses. Inventory at 30 September 2008 is expected to be about £60m higher than at 31 March 2008 (£269m), including the currency translation impact.

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Americas remained the best performing region, while Europe and Asia both also showed growth in comparable store sales. There was good growth in Korea and smaller markets in Asia including Singapore and Australia and solid performances in France, Germany and the UK. Spain remained down double-digit.

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