Burberry Hong Kong sales still falling
Burberry Hong Kong was the only apparent dampener on a solid quarter for the British luxury fashion retailer.
Global retail revenue reached £407 million in the three months to June 30, representing an eight per cent increase, or 10 per cent at reported foreign exchange rates.
But Hong Kong, where sales fell at a double-digit percentage rate, dragged the broader Asia-Pacific market down by the “low single-digit percentage”.
“Mainland China comparable sales grew by a low single-digit percentage and Japan saw exceptional growth, albeit off a small base,” said Burberry in its sales statement issued Wednesday.
Christopher Bailey, CEO and chief creative officer said Burberry was pleased with its underlying six per cent same store sales growth.
“While mindful that the external environment remains challenging, we will continue to focus on growth opportunities across channels, regions and products, with exciting plans for the year ahead.”
Bailey said the sales growth – outside Hong Kong – reflected the company’s ongoing emphasis on serving customers more effectively on and offline, and continued innovation in design and marketing – “particularly around the iconic, British-made products that performed so well in the period”.
By region, there was double-digit percentage comparable sales growth in EMEIA, with strength from the travelling luxury customer in France, Italy and Spain in particular. The Americas delivered high single-digit percentage comparable growth, with footfall recovering through the quarter after a soft start.
By product, heritage trench coats and cashmere scarves drove growth, as well as ponchos, an emerging key category for the brand.
During the first quarter, Burberry opened five mainline stores and closed three. Openings included a new store in Brookfield Place, New York and relocations in the Mall of the Emirates, Dubai and Westfield White City, London. It also expanded its Regent Street flagship, adding an area dedicated to gifting.