Burberry’s modest first-quarter growth
The company achieved quarterly retail revenue of £479 million (approximately AU$850 million) in the 13 weeks to June 30.
Revenue from mainland China grew, while Hong Kong, Korea and Japan all benefited from increased spend by Chinese tourists in Asian tourist destinations.
The Asia Pacific region grew by a “mid-single digit percentage”, though no solid data was provided.
The company revealed that mobile has become its largest digital channel, with direct-to-consumer growth having been led by Asia Pacific.
“We are pleased with our progress in the quarter,” said Marco Gobbetti, CEO.
“The team has embraced Riccardo [Tisci]’s creative vision and is working well together as we prepare for his debut collection in September, the next step of our journey. While we know it will take time to achieve our ambitions, our progress-to-date and the energy in and around the company give me confidence for the future.”
Sales in Europe, the Middle East, India and Africa declined by a low-single digit percentage due to softer tourist demand, while the Middle East remained weak due to “macro factors”.
The Americas, however, grew by a high-single digit percentage, with footfall in the US positive, continuing trends seen in the fourth quarter of FY18.
The company noted it was on track to deliver cumulative cost savings of £100 million over the course of FY19.
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