14th Jan 2016 07:13
LONDON (Alliance News) - Luxury goods retailer Burberry Group PLC on Thursday said like-for-like sales were flat in the third quarter of its financial year, a better performance than in the second quarter, as mainland China, key market for the group, returned to growth.
The FTSE 100-listed British heritage brand, known for its scarves and trench coats, said its retail revenue for the half was GBP603.0 million. Retail revenue was flat on a like-for-like basis, an improvement on the 4.0% decline seen in the second quarter. Total retail revenue was up 1.0% in constant currencies.
The group saw an improvement in its Asia Pacific business. Though Hong Kong remained weak, mainland China returned to growth. Burberry shares have suffered in recent months from concerns about a slowdown in sales in China and Hong Kong, two key markets for Burberry.
Europe, Middle East and Africa sales increased in the quarter on a like-for-like basis, with good performances in Italy and Spain offsetting a slowing French market. Americas like-for-like sales grew marginally, Burberry said, with a recovery in sales to US domestic consumers but continued weakness in sales to tourists.
Burberry said its profit expectations for the full year remain unchanged, as cost-cutting measures have helped to offset its slowing sales growth.
"In a tougher environment than expected, our sustained focus on growth and cost control drove a number of positive results over the quarter, including the outperformance of digital and a return to growth in mainland China," said Christopher Bailey, Burberry's chief executive and chief creative officer.
"The outlook for our sector remains uncertain as the consumer and environment evolve. However, we are anticipating and responding to these changes through an intense focus on new growth opportunities and the acceleration of our productivity and efficiency agenda," Bailey added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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