Burberry fashions sales upgrade as new products boost growth

Wed, 22nd Jan 2020

Luxury fashion retailer Burberry lifted its outlook on revenue after third-quarter sales were boosted by the launch of new products. The retailer said it now expected 2020 revenue to grow by a low single digit percentage at constant currency, compared with previous guidance of broadly stable sales. Adjusted operating margin was expected to remain broadly stable despite the impact of disruptions in Hong Kong. The margin guidance included cumulative cost savings of £125m, ahead of the company's previous guidance of £120m. Comparable store sales grew 3% in the third quarter, driven by new product availability, but this was partially offset by reduced markdown inventory made available for sale and disruptions in Hong Kong. Asia Pacific grew by a low single digit percentage driven by Mainland China, whilst Hong Kong S.A.R sales halved. EMEIA grew by a high single digit percentage supported by tourist spend, which particularly benefited Continental Europe, while the US grew by a low-single digit percentage partially offset by Canada. 'We continued to see a strong response from consumers with Riccardo Tisci's new collections delivering double digit growth compared to the prior year,' Burberry said. 'At the end of the period, new product comprised around 75% of the assortment in our mainline stores.' Story provided by StockMarketWire.com

FTSE 100 Latest
Value6,575.46
Change-220.94