Burberry maintains full year guidance as sales rise

Worldwide
Published:  15 November, 2019

The British luxury Group posted revenue £1.28 billion (US$1.65 billion) for 26 weeks ended September 28, 2019, up 3% on current exchange rates and 5% on a reported basis.

Burberry’s retail comparable store sales increased 4% in the period, year-on-year, with an acceleration observed in the second quarter “despite considerable disruptions in Hong Kong”. Operating profit stood at £202 million (US$260 million) in the period, up 17% on a reported basis, while Group adjusted pro forma operating profit declined 4% at current exchange rates to £187 million (US$240 million).

Geographically, sales in the Asia Pacific and EMEIA grew by a “mid-single digit percentage”, and in the Americas by a “low single-digit percentage”. According to Burberry, the trend in accessories was “softer year-on-year”, but it “improved significantly” through the period with consumers responding positively to newly launched bags.

“Whilst mindful of the global economic uncertainty, we maintain our FY 2020 guidance of broadly stable revenue and pro forma adjusted operating margin at current exchange rates, including the delivery of £120 million (US$154.5 million) cumulative cost savings”, said the Company.