Burberry sales surge appeases angry shareholders over Bailey's pay package

Burberry first-quarter sales increased by 12% despite a rising pound

Burberry went some way towards placating investors angered by new boss Christopher Bailey’s pay today as it shrugged off a strong pound to deliver double-digit sales growth.

Burberry will face investors tomorrow at its annual meeting where as many as 30 per cent of shareholders are set to oppose Bailey’s pay and perks package, worth up to £27 million.

But first-quarter sales increased by 12 per cent despite a rising pound which will make the British brand’s products more expensive for overseas customers, potentially impacting profit this year by more than  £65 million.

Strong demand from the US and Asia helped the company report the double-digit sales rise for stores open more than a year. The shares added 26p to 1445p.

Retail sales for the three months to July reached £370 million.

Carol Fairweather, Burberry’s chief financial officer, said lower  growth in Europe was due to a decrease in shopping by “mainland Europeans and Russians” who are “spending and visiting less”. However, she added that the “UK local customer is still spending”.

 

Burberry hosted its latest menswear fashion show last month in London and reported strong global demand for mens’ tailoring, womens’ Prorsum and trenchcoats.

Bailey, who took on the joint role of chief executive and chief creative officer in May when Angela Ahrendts left for Apple, said: “This first-quarter performance reflects ongoing investment in retail, digital and service, both on and offline. The increase demonstrates our teams’ success as we continue to concentrate on the things we can control in an uncertain external environment.”

Fairweather added that the group will ride out the currency fluctuations and had “no plans in the short term” for price changes but will monitor prices “season by season”.

Burbery opened four stores during the quarter — one in Edinburgh and three airport stores including an outlet at Heathrow — and has a series of launches planned. Its new perfume, My Burberry — modelled by Kate Moss and Cara Delevingne — and its Bloomsbury handbag will both launch in September.

The group’s beauty business, which it took control of last year, is on track to grow by about 25 per cent and plans to launch skincare products next year.

Burberry is also in the process of taking control of its Japanese business when its licence ends in June next year.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksAn introduction to the ground rules of British democracy
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Collections Agent

£14000 - £16000 per annum: Recruitment Genius: This company was established in...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE 40k: SThree: SThree are a global FTSE 250 busi...

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + competitive: SThree: SThree are a global FTSE 250 ...

Reach Volunteering: Trustees with Finance, Fundraising and IT skills

Voluntary and unpaid, reasonable expenses reimbursable: Reach Volunteering: St...

Day In a Page

Migrant crisis: UN official Philippe Douste-Blazy reveals the harrowing sights he encountered among refugees arriving on Lampedusa

‘Can we really just turn away?’

Dead bodies, men drowning, women miscarrying – a senior UN figure on the horrors he has witnessed among migrants arriving on Lampedusa, and urges politicians not to underestimate our caring nature
Nine of Syria and Iraq's 10 world heritage sites are in danger as Isis ravages centuries of history

Nine of Syria and Iraq's 10 world heritage sites are in danger...

... and not just because of Isis vandalism
Girl on a Plane: An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack

Girl on a Plane

An exclusive extract of the novelisation inspired by the 1970 Palestinian fighters hijack
Why Frederick Forsyth's spying days could spell disaster for today's journalists

Why Frederick Forsyth's spying days could spell disaster for today's journalists

The author of 'The Day of the Jackal' has revealed he spied for MI6 while a foreign correspondent
Markus Persson: If being that rich is so bad, why not just give it all away?

That's a bit rich

The billionaire inventor of computer game Minecraft says he is bored, lonely and isolated by his vast wealth. If it’s that bad, says Simon Kelner, why not just give it all away?
Euro 2016: Chris Coleman on course to end half a century of hurt for Wales

Coleman on course to end half a century of hurt for Wales

Wales last qualified for major tournament in 1958 but after several near misses the current crop can book place at Euro 2016 and end all the indifference
Rugby World Cup 2015: The tournament's forgotten XV

Forgotten XV of the rugby World Cup

Now the squads are out, Chris Hewett picks a side of stars who missed the cut
A groundbreaking study of 'Britain's Atlantis' long buried at the bottom of the North Sea could revolutionise how we see our prehistoric past

Britain's Atlantis

Scientific study beneath North Sea could revolutionise how we see the past
The Queen has 'done and said nothing that anybody will remember,' says Starkey

The Queen has 'done and said nothing that anybody will remember'

David Starkey's assessment
Oliver Sacks said his life has been 'an enormous privilege and adventure'

'An enormous privilege and adventure'

Oliver Sacks writing about his life
'Gibraltar is British, and it is going to stay British forever'

'Gibraltar is British, and it is going to stay British forever'

The Rock's Chief Minister hits back at Spanish government's 'lies'
Britain is still addicted to 'dirty coal'

Britain still addicted to 'dirty' coal

Biggest energy suppliers are more dependent on fossil fuel than a decade ago
Orthorexia nervosa: How becoming obsessed with healthy eating can lead to malnutrition

Orthorexia nervosa

How becoming obsessed with healthy eating can lead to malnutrition
Lady Chatterley is not obscene, says TV director

Lady Chatterley’s Lover

Director Jed Mercurio on why DH Lawrence's novel 'is not an obscene story'
Farmers in tropical forests are training ants to kill off bigger pests

Set a pest to catch a pest

Farmers in tropical forests are training ants to kill off bigger pests