Burberry quarterly like-for-like sales rise 3%

Burberry Group PLC (BRBY.LN) said Wednesday that retail like-for-like sales growth slowed in the first quarter with softer tourist demand impacting sales in Europe.

For the 13 weeks ended June 30, the British luxury fashion company’s retail like-for-like sales rose 3% compared with the 4% growth recorded in the same period a year earlier.

Retail revenue was largely unchanged at 479 million pounds ($635.3 million) compared with GBP478 million the previous year. At constant exchange rates retail revenue increased 3%.

FTSE 100-listed Burberry said the Asia Pacific grew by a mid-single digit percentage point in the first quarter. Mainland China grew as Hong Kong, Korea and Japan gained from Chinese spend shifting more to Asian tourist destinations in the region.

The company’s sales in the Europe, the Middle East, India and Africa declined by a low single digit percentage point, while softer tourist demand impacted both the UK and Continental Europe and the Middle East remained weak due to macro factors.

The Americas grew by a high single digit percentage and Burberry said improved trends seen in the fourth quarter of fiscal 2018 continued in the first quarter with positive footfall.

Burberry said there was no change to guidance at constant exchange rates for fiscal 2019 with some easing of currency headwind at current rates expected. The company added that it is also on track to deliver cost savings of GBP100 million for the year.

Source: Read Full Article