Sales growth reached 12 percent on a like for like basis

Burberry beats sales forecasts

PARIS (Reuters) British luxury brand Burberry reported faster than expected sales growth in its financial first quarter but warned a strong pound would hit canada goose clearance sale this year profits.

Burberry reported retail revenue uk canada goose outlet of 370 million pounds ($629.6 million) for the three Canada Goose Coats On Sale months to June 30, which beat analyst forecasts of around 350 million pounds. Sales growth reached 12 percent on a like for like basis, compared to an 8 percent consensus analyst forecast.

Bigger luxury labels such as Louis Vuitton and Gucci have seen retail sales growth collapse to below 5 percent from cheap canada goose uk above 10 canada goose coats percent three years ago coat as consumers tired Canada Goose Parka of canada goose store global brands they saw as too ubiquitous.

Burberry, known for its camel trenchcoats, has canada goose kept sales growing in China, unlike rivals that suffered more from a canada goose factory sale crackdown canada goose coats on sale on corruption and conspicuous spending.

But sterling strength is taking its toll on the company earnings power.

Burberry fixed costs are in pounds and its revenue comes in a variety of currencies. It said exchange rates would reduce this year retail and wholesale profit by about 55 million pounds and would narrow its adjusted operating margin to around buy canada goose jacket cheap 16 percent from 17.5 percent.

driving best in class top line Canada Goose Jackets growth, the continued margin pressure at Burberry cheap Canada Goose remains a concern, and today results do not help to improve canada goose uk black friday the profitability gap that exists between Burberry Canada Goose Outlet and its luxury peers, Bernstein said in a note.

It estimated the operating profitability gap between Burberry and top players such as Kering, the group behind Gucci, and Prada to be around 7 10 percent.

Morgan Stanley uk canada goose said it expected consensus expectations for profit before tax to be cut by around 3 4 percent.

CHINESE TRAVELLERS Burberry is the first luxury goods company to report second quarter Canada Goose online earnings, to be followed later this month by Louis Vuitton owner LVMH and Kering.

The British brand said demand in the canadian goose jacket UK remained solid but buy canada goose jacket noted a slowdown in continental Europe, with canada goose black friday sale a decline in the number canada goose uk outlet of transactions from tourists including Russians, a trend that is likely to have affected rivals as well.

However, demand from Chinese travellers remained strong, it said.

remains one of the very few luxury companies canada goose uk shop to continue to enjoy double digit revenue growth, Citi said in note. Citi has a rating on the stock as it believes a valuation premium to peers has disappeared in the past year.

Burberry started running its perfume business directly last year after ending a partnership with Interparfums. It said it expected to roll out its first skin care products some point in 2015

The brand, which has branched out into make up and nail polish, said it expected beauty revenue to rise 25 percent this year.

A logo of Burberry is displayed outside its store at Tsim Sha Tsui shopping district in Hong Kong January 18, 2013. REUTERS/Bobby Yip

It said it expected broadly unchanged revenue Canada Goose Online at constant canada goose clearance exchange rates Canada Goose sale in both Japan and global product licences, but it would lose about 10 million pounds in reported licensing revenue, given the movement in the sterling/yen rate.