Burberry fashions some decent figures despite union protests

The fashion house Burberry reported sparkling sales figures yesterday, allaying fears that the iconic British brand had been damaged by trade union protests against a factory closure.

Burberry, which is synonymous with its camel, red and black check design, revealed second-half sales rose 19 per cent to £458m, lifting sales for the full year to £850m. Turnover in the last three months of its financial year to 31 March increased 24 per cent, boosted by the launch of its Beaton handbag, which has a starter price of £1,095 and is considered a must-have for celebrities. Its finance director Stacey Cartwright said the success of its new ranges had led Burberry to cut short its January sales, bringing forward its summer and spring ranges.

There had been concerns that a high-profile dispute led by the GMB union over the closure of a factory in Wales at the end of March, with the loss of around 300 jobs, could damage the brand. High-profile figures, including Emma Thompson and Tom Jones, backed the campaign.

But Ms Cartwright said: "The numbers speak for themselves. If you want to see the impact of the brand, look at the last half's sales."

Burberry, which was established in 1856 and came to prominence equipping polar explorers, achieves 90 per cent of its sales overseas, particularly in Asia and the US, where it is seen as a quintessentially British brand. It managed to transform itself from an upper-class maker of raincoats to a chic brand at the start of the decade but was almost a victim of this success when it became associated with "chav" culture and copies of its famous check appeared everywhere.

Yet branding experts say Burberry's image as a high-class retailer has remained intact. By refraining from acknowledging the association, it was able to maintain its luxury image overseas. In its recent collections Burberry has used the check design in a less obvious way, often just as a lining, and there has been a concerted push on accessories with successful sunglasses, handbag and perfume ranges launched.

Kate Waddell, consultant at Brandsmiths said: "There is less reliance on the Burberry check. They are using it in a more subtle way and there has been a return to classic signature pieces. In a sense fashion has moved towards them as the trench is now back."

Chief executive officer Angela Ahrendts called the results "outstanding" and added that the performance was consistent with the company's expectations for the full-year.

But analysts were less positive about the stock. Richard Newboult at Panmure Gordon, which has a sell rating on the company, said he fully recognises "the fact that Burberry has been doing well over the past year" and has "no issues with management's efforts to improve the efficiency of the group". But he believes that comparable store sales growth will slow over the next few quarters. Shares dipped 1 per cent to 700p. The company also highlighted the negative impact of the weaker yen, warning it will reduce licensing revenues by around £7m compared with analysts forecasts of £6.5m.