Double digit growth for Burberry in Europe and Asia offset by difficulties in U.S.

Harry Potter actress  has cast her spell on Burberry sales in the UK since featuring in an ad campaign for the fashion house.
It posted an 'exceptional' performance in Britain, with sales at stores including key outlets in Regent Street and Knightsbridge up 12per cent in the past three months.
But growth in Europe and Asia was offset by weakness in other markets.

Burberry: An 'exceptional' UK performance - lifted by an ad campaign featuring Harry Potter starlet  - was offset by weakness elsewhere

Burberry said customers had responded well to its Spring/Summer ranges, particularly mens tailoring, denim, sport and childrenswear.

 

The firm added: 'Europe and Asia both delivered double-digit percentage growth, with exceptional performances again in the UK and Korea (both helped by favourable currency movements).'
Meanwhile Burberry's wholesale business saw sales drop 28per cent as customers face the recession by slashing the amount of stock held, while Burberry is also restructuring its wholesale division and closing some operations.
Angela Ahrendts, the retailer's chief executive, said: 'Burberry has made a solid start to the year in what remains a challenging environment.'
Burberry plans to add between 10 and 15 stores to its portfolio this year.
A new American headquarters and showrooms were opened on Madison Avenue in New York during the quarter, as well as three franchise stores in emerging markets, including the first Burberry store in Bahrain.
The firm said as of the end of June it had 118 retail stores, 253 concessions and 84 franchise outlets in over 25 countries.
Burberry said its cost cutting initiatives were delivering the expected results.
Steps taken by Burberry to tackle the global slowdown have included a £50million inventory reduction and a £50million efficiency programme.
The company endured a 13per cent fall in underlying profits last year, despite annual revenues topping more than £1billion for the first time.
The firm shed around 15per cent of its workforce in the last financial year.
In January, Burberry announced 170 jobs were going as a result of its plan to close a sewing facility at Rotherham, south Yorkshire.