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Burberry Group ups guidance after new lines sell well

Revenue for the year to March is expected to grow by a low single-digit percentage, as opposed to flat sales anticipated in November’s interim results

Burberry Group

Burberry Group PLC (LON:BRBY) slid despite upping its revenue guidance following better sales of new lines at full prices in its third quarter.

The FTSE 100-listed luxury goods group now expects for the year to March to grow by a low single-digit percentage, as opposed to flat sales predicted in November’s interim results.

READ: Burberry profits slip as Hong Kong teeters

The upgrade comes in spite of the unrest in Hong Kong, one of its key markets.

Revenues rose by 2% to £718mln in the 13 weeks ended 28 December and by 3% on a like-for-like basis.

The luxury goods firm is in the second year of chief executive Marco Gobbetti's plan to shift the brand further upmarket under new creative director Riccardo Tisci.

Tisci's new collections are delivering double-digit growth compared to the prior year, said Gobetti.

“While mindful of the uncertain macro-economic environment, we remain confident in our strategy and the outlook for the financial year 2020,” he added in the statement.

Shares, however, dropped 4% to 2,183p over fears on the coronavirus spreading in Asia.

"It could... have financial implications, which has resulted in a markdown of share prices of those companies which could be affected, such as Burberry," Richard Hunter, head of markets at interactive investor, said in an email.

 - Adds share price, analyst comment --

Quick facts: Burberry Group PLC

Price: 1649 GBX

LSE:BRBY
Market: LSE
Market Cap: £6.67 billion
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