Burberry sales slow down
British premium brand BURBERRY reported this week a revenue of 408 million pounds in the three months to the end of June, its fiscal first quarter, an underlying increase of 11 percent. That was down from growth of 15 percent in the fourth quarter of the previous year and compares with analysts’ consensus forecast for growth of 13 percent, according to a company poll.
Burberry’s and other luxury goods firms’ shares have wobbled in recent months over worries about Europe’s debt crisis and slowing growth in some emerging markets like China, where runaway demand for high-end goods has offset weaker trends in the United States and Europe.
Burberry shares closed Tuesday at 1,284pence, valuing the business at 5.5 billion pounds. The group’s retail revenue was up an underlying 14 percent to 280 million pounds, with comparable store sales up 6 percent, led by growth in the UK, France, Germany and China.
Wholesale revenue rose an underlying 9 percent to 102 million pounds, in line with company guidance. However, licensing revenue fell an underlying 5 percent to 26 million pounds, impacted by the phasing of licence terminations.
adapted from Reuters