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Burberry Revenue Rises 30%, Topping Forecasts

British fashion house Burberry Group beat analysts' forecasts with a 30% jump in underlying first-quarter sales and said the results were consistent with its expectations for the full year.

The company, famous for its camel, red and black check fabric design, said on Wednesday total sales in the three months to June 30 were 167.5 million pounds ($339.7 million).

A Reuters poll of five analysts had forecast sales of 153 million pounds, within a range of 149 million to 157 million.

"The year is off to a good start," Chief Executive Angela Ahrendts said in a trading statement.

"Our key strategies continue to drive strong retail performance and we are pleased that these retail-oriented initiatives are benefiting wholesale partners as well," she added.

Burberry shares were down 0.3% at 673 pence in early trade, valuing the company at around 2.9 billion pounds.

"We must point out that, although it was expected, this was an excellent performance through what has been a difficult period for the fashion retailers," Seymour Pierce's Andrew Wade said in a note.

Kaupthing Singer & Friedlander said it was a "solid" trading update, adding that on its forecast for earnings per share (EPS) of 32.2 pence for this year the stock trades on a multiple of 21 times.

"This is the sort of rating that strong global brands have merited in the past," it added in a note.

The core retail business, which accounted for around 58% of total revenue in the quarter, saw sales increase by an underlying 25% to 97 million pounds, compared with a Reuters poll for an average of around 95.8 million.

The luxury brands company, which began in 1856 and made its name equipping polar explorers, said it remained on schedule to increase average net retail selling space by approximately 13% in the year.

The wholesale business saw revenue jump by an underlying 51% to 55.3 million pounds, which Kaupthing had said partly reflected an earlier phasing of deliveries.

Burberry said it continues to expect a mid-teens percentage underlying increase in sales in the first six months.

The licensing business saw revenue rise by an underlying 6% to 15.2 million pounds, and the company continues to expect broadly flat undering revenue for the full year.