Judging by its second-half trading update, Burberry (BRBY) looks in better shape than when it issued a profit warning roughly six months ago. Total underlying revenue grew 9 per cent to £1.1bn, including an £840m contribution from the retail division. There, sales rose 13 per cent, driven by 16 per cent revenue growth in the Asia Pacific region, notably China.
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As well as being the fastest-growing region, Asia Pacific represents 42 per cent (£447m) of group combined wholesale and retail revenue. In contrast, weak demand and account rationalisation in Europe caused wholesale revenue to fall 3 per cent to £220m. During the period, Burberry opened 10 mainline stores, and closed two, bringing the total to 206 for the year, a net increase of 14.
