An advertising campaign featuring 10-year-old Romeo Beckham helped luxury fashion group Burberry notch up a 13% hike in sales after an "exceptional" response to its spring/summer collection.
An advertising campaign featuring 10-year-old Romeo Beckham helped luxury fashion group Burberry notch up a 13% hike in sales after an "exceptional" response to its spring/summer collection.
The group enlisted the budding fashion model and son of Victoria and David Beckham as the star of its latest campaign, alongside Cara Delevingne and Edie Campbell.
Burberry said spring/summer was a "standout season" for the group, with its high-end Prorsum fashion range and accessories such as the Blaze and Orchard bags proving a hit with shoppers.
The first quarter like-for-like sales rise marks an impressive increase over the 7% growth seen in the previous six months, with total retail sales in the three months to June 30 up 18% at £339 million, excluding exchange rate effects.
Burberry said: "In what remained an uneven trading environment, there was an exceptional consumer response to spring/summer 2013."
It added that its ad campaign and catwalk shows generated "record reach and engagement".
The group said store sales were led by Hong Kong and China, with double digit growth in comparable trade across Asia Pacific and the Americas, while it saw "high single-digit" growth across Europe and the rest of its global operations.
While customer footfall - the number of shoppers visiting its stores - was "soft", Burberry said this was offset by strong growth online.
But despite the sales lift, Burberry is still expecting half-year underlying pre-tax profits to drop below the £173 million figure reported a year earlier as wholesale revenues remain under pressure and as it takes an initial hit from bringing perfumes and cosmetics in-house earlier this year.
Burberry decided to start making its own beauty products last year, ending a licence agreement with Interparfums - a move that is costing it 181 million euros, but is expected to boost profits over time.
Shares shrugged off the disappointing first half profit outlook, rising more than 3% on the sales cheer.
Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said it was an "impressive start to the year" for the group.
"Burberry remains well regarded by consumers and investors alike," he added.
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