“Exceptional” UK performance puts Burberry back on track

AN impressive performance in the UK and improvement in France and Asia Pacific have led to increased turnover at fashion giant Burberry.

Retail revenue reached £735m for the third quarter, up 4% underlying, was a result of improvement in Hong Kong sales and accelerated growth in mainland China, an area it had previously been struggling in.

It remained a difficult market for Burberry in the Americas, with single-digit percentage decline affecting the business. Exchange rates also proved to be a killer. Expected retail and wholesale profits were expected to be £125m based on October 2016 rates, but have now been revalued at £115m based on December 2016 exchange rates.

The retailer, which is behind delayed plans for a £50m coat factory at Leeds’ South Ban, said it had seen growth across all its ranges, especially in bags.

It is also working on its continued turnaround programme, and is projected to deliver cost savings of £20m in 2017.

Earlier this week the £2.5bn fashion house announced major changes in its management team which will see current CEO Christopher Bailey take on a new role of president, and Marco Gobbetti step into a more day-to-day role.

Christopher Bailey, chief creative and chief executive officer, commented:”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. We continue to take action to position the business for growth over time and our plans to enhance efficiency are on track.”

 

 

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