Burberry (LSE: BRBY) 2H17 Trading Update: Sales Buoyed by Accessories, Strong Performance in the UK and Mainland China

Executive Summary

• Burberry reported a 2H17 group revenue decline of 1% at constant currency to £1,607 million (up 14% in reported currency), below the consensus estimate of £1,617 million.
• Retail revenues grew by 3% at constant currency to £1,268 million (up 19% in reported currency). Comps grew by 3%, slightly ahead of the consensus estimate of 2.5%.
• Wholesale revenues fell by 13% at constant currency to £327 million (down 1% in reported currency) and licensing revenues contracted by 38% at constant currency to £12 million (down 26% in reported currency).
• The company maintained its expectation for FY17 pretax profit.