Burberry bounces back after customers splash out on gifts

 
Kasmira Jefford
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SHARES in Burberry yesterday bounced back from their September crash after the luxury goods maker said a pick-up in the Chinese market helped boost third quarter sales.

The fashion brand sent shock waves through the luxury sector last year by warning of a global slowdown in spending – particularly in China.

But yesterday finance director Stacey Cartwright said it has seen a better performance in China “driven in part by an improvement in wider consumer sentiment, but also (by) self-help measures”.

Its latest third quarter figures show double digit growth in Asia Pacific, led by Hong Kong and China, and emerging markets.

Burberry said group sales rose by nine per cent to £613m in the three months to 31 December after a particularly strong week in the run up to Christmas.

Its retail arm, which accounts for three quarters of sales, grew by 13 per cent to £464m, offsetting a five per cent fall in wholesale revenues to £120m. Scarves and men’s accessories sold particularly well as people bought presents in the run-up to Christmas. Cartwright said second half wholesale sales would shrink by “a low to mid single-digit percentage” rather than be flat as previously forecast, after closing accounts in Europe.