Burberry: luxury sector remains uncertain
Burberry posted a 1 percent rise in third-quarter sales on Thursday buoyed by growth in China but said the outlook for the luxury sector remained uncertain. Retail revenue grew by 1 percent to 603 million pounds helped by strong demand in Europe.
The company said the mainland China market had returned to growth but performance was weighed by Hong Kong and Macau.
The results were in line with analysts’ expectations, helping to ease concerns over a slowdown in the luxury sector, which has been hurt by a fall in Chinese buying.
Burberry reported a sharp sales slowdown in Hong Kong and China in October, leading the FTSE 100 company to miss sales growth forecasts and warn of an increasingly challenging environment for luxury goods.
Chinese shoppers in Hong Kong and mainland China account for between 30 and 40 percent of Burberry’s global revenue. The company is expected to report a full-year pretax profit of 428 million pounds, down from 455.8 million in the previous year.