Burberry’s UK trade soars

Burberry store in LondonBritish luxury retailer Burberry has recorded a four per cent increase in like-for-like retail sales for the three months ended 31 December, totalling $1.19 billion.

The results were underpinned by “exceptional” performance in the company’s British operations, with comparable sales growth of approximately 40 per cent.

Asia-Pacific operations also returned to growth for the third quarter, hitting low single-digit percentages, driven by acceleration in mainland China and improvement in Hong Kong.

American trade experienced a low single-digit percentage sales decline, similar to sales trends in the first half, although the company reported an increase in American customer spending globally.

“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,” said Burberry CEO Christopher Bailey.

Commenting on the results, Verdict Retail analyst Charlotte Pearce said that although the company’s results have been chequered in recent times, their strong performance is a sign that the changes they are making are working.

“Burberry’s double digit growth in EMEIA is most notable in Q3, with the retailer reporting continued strong trading in the UK, thanks to the weak pound which has encouraged tourism spending. Meanwhile, the innovation and newness of its products aided strong performances in bags, accessories and apparel, with items such as rucksacks and buckle totes standing out,” she said.

“The brand continues to focus on its presence in the digital space through growing its online business, where mobile has been the driver due to improved payment methods, as well as developing an app, which is currently in its testing phase, in order to build Burberry’s connection with customers.”

Burberry operates five stores in Australia.

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