Burberry reports Q1 slowing growth, affected by China
Burberry reported today slowing sales in the first fiscal quarter, highlighting the challenges that luxury-goods suppliers face amid weak demand from Chinese consumers.
Burberry said its total underlying sales for the six months ended Sept. 30 rose 14% from a year earlier to £1.1 billion ($1.8 billion), which the luxury brand said was balanced across regions and product categories.
But comparable-store sales, a figure closely watched by analysts because it excludes store closings and new-store openings, rose 10% during the period as the company’s sales performance weakened in the second quarter.
Burberry reported comparable sales growth of 12% in the first quarter, but that slowed to 8% in the second quarter, hurt by “external factors in some markets.” It didn’t detail what the factors were but did cite “softening in growth from Chinese consumers both at home and when traveling.”