Burberry ORD ...-0.13%
Burberry retail sales grow by 1% in third quarter
Burberry, U.K.-based global luxury apparel brand, recorded annual growth of 1% ending in the third quarter of last year, in spite of difficulties experienced by the luxury sector, the company reported on Thursday.
According to the company’s third quarter financial update, retail sales increased by 1% year-on-year to £603 million ($869.5m, €799.7m). Comparable sales remained unchanged year-on-year, an improvement from negative 4% recorded in the second quarter.
Burberry recorded growth in Asia-Pacific region in general, however sales have dropped by 20% in Hong Kong, one of company’s key markets. Company’s revenue in this market experienced a continuous decline, one that has prevented luxury goods retailer from achieving its set sales target in the second quarter. In spite of this, Burberry's chief executive Christopher Bailey expressed confidence in the company’s financial outlook, adding that luxury apparel producer anticipates and responds to changing business environment, and focuses on growth opportunities.
Canada, Brazil and Mexico, together amounted to a double-digit percentage comparable sales growth. These countries account for 15% of total Burberry’s retail revenue on America continent.
EMEIA countries (Europe, Middle East, India and Africa) continue to aid to the overall growth in sales, with Italy and Spain sales increase 20%, while France sales decreased. Purchases back home in the U.K. declined, mainly due to the slowdown in the segment of visiting Chinese and Middle Eastern customers, the company said.
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