Burberry reports increased retail revenue in third quarter but growth in Americas declines

 
Caitlin Morrison
Follow Caitlin
Burberry said it had returned to growth in Asia

Burberry said today its revenues had increased in the three months to 31 December, and it welcomed a return to growth in Asia.

The figures

Retail revenue was up four per cent on an underlying basis, to £735m, while like-for-like sales went up three per cent.

The group said £77m of its £150m share buyback programme had been completed.

Burberry also said it is on track to deliver cost savings of around £20m in the 2017 financial year.

The firm's share price were up 3.3 per cent by mid-afternoon.

Why it's interesting

The luxury retailer said its Asia Pacific business had returned to growth, which should come as a relief after a difficult period of trading in the region - particularly in China. The designer said its digital business had grown in all regions, with significant growth in China "reflecting strategic focus and investment".

Meanwhile, although a hoped-for £125m boost from currency movements has been reduced to about £115m using 31 December rates, the group said that since the end of 2016, the movement in exchange rates has become "slightly more favourable".

The group could be set for more change, when its new leadership comes into force - earlier this week, Marco Gobbetti was confirmed as the incoming chief executive of the brand.

What Burberry said

"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," said Christopher Bailey, Burberry's chief creative and chief executive.

"We continue to take action to position the business for growth over time and our plans to enhance efficiency are on track."

In short

It looks like Burberry could be back in fashion.

Related articles