Burberry sales edge up after improvements in China
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Luxury goods maker Burberry says its retail revenue rose 1 percent in the last three months of 2015, as its critical market in mainland China returned to growth.
Shares in the company rose on the London stock exchange on Thursday, possibly due to investor relief that demand in mainland China held up.
The revenue growth was nevertheless far below the double-digit increase enjoyed a year earlier. Sales in Hong Kong declined by over 20 percent, hurting results for the Asia-Pacific region.
Christopher Bailey, chief creative and chief executive officer, says headwinds in Hong Kong and Macau “masked an otherwise stronger performance in many markets.”
Anusha Couttigane, a senior consultant at retail analyst Conlumino, says “for all Burberry’s investment in experiential retailing, its Q3 performance has enjoyed little Christmas cheer.”
Questions & Answers
Q.What was Burberry's retail revenue growth in the last three months of 2015?
What was Burberry's retail revenue growth in the last three months of 2015?
Burberry's retail revenue increased by 1 percent during the last three months of 2015. This was significantly lower than the double-digit growth achieved in the previous year.
Q.Which market's decline impacted Burberry's results in the Asia-Pacific region?
Which market's decline impacted Burberry's results in the Asia-Pacific region?
Sales in Hong Kong declined by over 20 percent, which negatively affected the results for the wider Asia-Pacific region. This masked stronger performances in other markets.
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