LONDON (Reuters) -Luxury brand Burberry said annual profit would beat market expectations as its full-price sales accelerated in the third quarter, driven by a strong performance in outerwear and leather goods and a material improvement in Asia and Europe.
The British company, known for its camel, red and black check and TB monogram, said its adjusted operating profit for the year to April 3 would rise by about 35% at constant exchange rates.
Analysts had expected on average a rise of 19% to 472 million pounds ($642 million), according to a company-compiled consensus.
Full-price comparable store sales were 26% higher than the same period two years ago, Burberry said on Wednesday, while comparable store sales on the same measure were down 3% due to its planned reduction in markdowns.
Chair Gerry Murphy said growth in full-price sales had accelerated from the second quarter, reflecting a higher quality business.
“Despite the ongoing challenges of the external environment, we are confident of finishing the year strongly and providing an excellent platform on which to build when our new CEO Jonathan Akeroyd joins in April,” he said.
($1 = 0.7353 pounds)
(Reporting by Paul Sandle; editing by James Davey and Kate Holton)
