A woman passes a Burberry outlet in Regent Street, central London. Bloomberg News
British luxury goods group Burberry smashed third-quarter sales forecasts and predicted annual profit towards the top end of market expectations, adding to evidence the rich are spending again.
The 154-year-old maker of upmarket raincoats and handbags also said yesterday it expected profit growth in 2010-11.
"Our philosophy here is whatever's happening in the outside world, whatever's happening with the luxury consumer, our strategy should help us drive outperformance," Chief Financial Officer Stacey Cartwright told reporters.
Luxury goods firms have been hit hard in the recession but Burberry has coped better than most because it reacted quickly by slashing costs and jobs as well as its stocks and ranges.
The group, known for its camel, red and black check, said underlying revenue increased 12 percent to 380 million pounds ($624 million) in the three months to Dec 31, driven by strong sales of outerwear and non-apparel items, such as handbags, snoods and scarves.
That compared with analysts' consensus forecast for a rise of 3 percent, according to a company poll of 12, and a first-half decline of 5 percent.
Shares in Burberry, which have nearly trebled over the last year, were up 4.6 percent at 0949 GMT, valuing the business at 2.7 billion pounds.
"Burberry is beating its competitors on all counts and the trend is still getting better," said Evolution Securities analyst Dennis Weber.
