Luxury fashion retailer Burberry has warned current exchange rates could hit profits as it announced a rise in sales.
The company said that “currency headwinds” would reduce revenue in its licensing division by £10m at current rates.
Sales rose 17 per cent to £370m as the retailer posted strong sales in Asia Pacific and Americas. It reported double-digit growth across its retail, wholesale and licensing divisions and said its mens tailoring, womens Prorsum and solid leather accessories were selling well.
Christopher Bailey, chief creative and chief executive officer, commented: “This first quarter performance reflects our focus on striving to give customers the best possible experience of the Burberry brand through ongoing investment in retail, digital and service, both on and offline.
“As we build on this strong start to the year, our priority remains to connect consumers ever closer to Burberry through authentic products and experiences that celebrate our unique heritage.”
Bailey will face shareholders at the companies annual AGM tomorrow with the meeting likely to be dominated by his reported £20m pay package, which some believe to be overly generous.
Bailey took over as chief of Burberry from Angela Ahrendts who left the firm in October last year to join Apple.