Retail drives Burberry

Burberry, which yesterday appointed a chief executive to replace Rose Marie Bravo, has reported strong sales growth in its retail business.

Underlying retail sales were up 9 per cent to£124 million in the six months to September 30. However, the group's performance was dragged down by a 1 per cent fall in sales at the wholesale business to£191 million. Total sales across the group rose by 3 per cent to£355 million.

The retail in retail was driven by the US and Asia Pacific markets, while there was a disappointing performance in Europe. The company described both the retail and wholesale markets in the UK as 'soft.'

Burberry said it expects to grow selling space over the second half, but that wholesale revenues would continue to fall.