Burberry encouraged by first quarter progress

Burberry got off to good start in the first quarter as it announced a move to a new model of "frequent and sometimes unexpected drops" of new limited-edition products or collaborations with celebrities or other designers.

Reported sales of £479m in the 13 weeks to 30 June were up £1m on the same period last year, but if ignoring constant swings sales were 3% higher. There was no change to full year guidance for underlying sales but some easing of currency effects was was expected at current rates.

"We are pleased with our progress in the quarter," said chief executive Marco Gobbetti, who joined a year ago from French luxury brand Celine and has since been joined by a new chairman and appointed his former Givency protege Riccardo Tisci as chief creative officer earlier this year.

He said the company has "embraced Riccardo's creative vision" and was working to prepare for his debut collection in September. "While we know it will take time to achieve our ambitions, our progress to-date and the energy in and around the company give me confidence for the future."

While growth in the first quarter came from newly launched handbags, such as the belt bag and D-ring, which was seen by Gobbetti as a positive early sign for the transformation of leather offering, while other popular products included car coats and seasonal tropical gabardine.

To engage with customers and create buzz ahead of Tisci's full September debut, some limited-edition pieces from Tisci's inaugural collection will be part of the "frequent and sometimes unexpected drops", with another revealed to be a Vivienne Westwood collaboration of "re-imagined iconic styles" that will launch in select stores in December.

Other Gobbetti introductions include strategic investments in key markets, including relocating and expanding the flagship store in Dubai and closing an additional two outlets, with pop-up stores to showcase new handbags in Beijing, Dubai, New York and Seoul.