- Prachi Singh |
In the third quarter to December 31, 2017, Burberry said comparable store sales increased by 2 percent, while retail revenues were down 2 percent reported and positive 1 percent underlying to 719 million pounds (990 million dollars) from 735 million pounds (1,012 million dollars), same quarter last year. The company said, guidance for FY18 operating profit remains unchanged and continue to expect to remain strongly cash generative.
Commenting on the trading update, Burberry’s Chief Executive Marco Gobbetti said in a statement: "We are making good progress embedding our strategic vision into the organisation and remain on track to meet our full year profit target. We are building on strong foundations and are fully focussed on the successful delivery of our multi-year plan to position Burberry firmly in luxury and deliver long-term sustainable value."
Financial highlights of Burberry’s Q3
The company added that comparable sales in Asia Pacific witnessed mid-single digit percentage growth consistent with the first half. Mainland China also delivered mid-single digit percentage growth, while Hong Kong was broadly unchanged year-on-year with improved domestic trends. Korea saw a better performance from both domestics and tourists, although sales still declined slightly. EMEIA posted a low single digit percentage decline, impacted by the UK, while the UK declined by a high single digit percentage, as it annualised exceptional performance of 40percent growth in the prior year boosted by tourist inflows.
Continental Europe, the company said grew comparable sales and the Middle East improved and Americas reported a low single digit percentage growth consistent with the second quarter. The US was broadly unchanged year-on-year with improved conversion offsetting footfall declines and tourist spending, Burberry added, still negative, showed a slight improvement compared to the second quarter.
By product, the company further said, fashion outperformed as customers continued to respond positively to new products across categories and improved outfit offer and full look merchandising showed positive early results with tops, skirts and trousers outperforming.
Direct-to-consumer digital continued to deliver positive growth led by Asia Pacific and mobile transactions represented 40 percent of revenue.