Burberry sales drop 3% in first-quarter

Worldwide
Published:  15 July, 2016

The iconic British fashion house has reported a 3% fall in sales and flat retail revenues of £423 million (US$565 million) in the first quarter.

According to Burberry, a positive 3% contribution from new stores resulted in flat retail sales of £423 million (US$565 million); slightly better than analysts' expectations, however, the luxury brand is struggling to with sales declines in mainland China and Hong Kong, as well as fewer tourists in Europe after attacks in Paris and Brussels.

The company says it should benefit from the drop in the value of the pound after Britain voted to leave the European Union. It expects its adjusted profit to be boosted by about £90 million (US$120 million) if exchange rates remain at current level.

On July 13, Burberry announced the appointment of Marco Gobbetti, currently Chairman and CEO of French luxury brand Celine, to succeed Christopher Bailey in 2017. Read more here.

Source: Reuters

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