Burberry Q3 performance on the rebound
For the three months to December 31, 2016, Burberry retail sales of £735 million (USD907 million) improved 4 percent underlying and 22 percent at reported FX. Comparable sales for the period increased 3 percent. The company expects FY17 adjusted PBT to be in line with current market expectations.
Commenting on the third quarter trading, Christopher Bailey, Chief Creative and Chief Executive Officer, said in a statement, “With a record number of views of our festive film and strong demand for new products in our collections, this third quarter improvement reflects early progress from our plans to drive Burberry’s performance for the long term.”
The company reported low single-digit percentage growth in Asia Pacific with acceleration in Mainland China, which posted a high single-digit percentage comparable sales growth, despite the impact of the elevation of the store portfolio in Beijing. Hong Kong, the company said, improved to a low single-digit percentage comparable sales decline, with positive conversion offsetting the majority of the footfall decline.
EMEIA region witnessing a double-digit comparable sales growth, continued exceptional performance in the UK with comparable sales growth of around 40 percent. While Continental Europe remained weak, France saw some improvement compared to Q2. Americas posted a low single-digit percentage decline in the Americas with domestic and travelling luxury customer demand remaining uneven in the United States.
Burberry said, fashion again outperformed replenishment and led growth across all categories and accessories outperformed, led by strength in bags.
Bailey’s successor as chief executive Marco Gobbetti will start work next week and will take on full responsibilities in July, Burberry said on Monday.