Luxury fashion brand Burberry has reported a dip in sales over the festive period as it said it was moving with “urgency” to turn the business around and return to profit. The global fashion house, founded in England in 1856, said the UK was the “under-performer” in terms of its markets around the world. Burberry launched a £40 million cost-cutting programme in November after sinking into a loss.
In an update to shareholders on Friday, it said there were early signs that the turnaround plan was already starting to pay off. It nevertheless reported revenues of £659 million for the 13 weeks to December 28, down 7% from the £706 million generated over the same period a year prior. But this was better than some analysts had been expecting, leading Burberry’s share price to jump by as much as 15% on Friday morning.
Store sales grew in America, boosted by locals and its refurbished New York shop, while sales decreased in Europe, the Middle East and Africa driven by both locals and tourists. Kate Ferry, Burberry’s finance chief, said the UK market is “reasonably small” in terms of its global sales, but that the region was an “under-performer” with some pressure on spending among shoppers living in the country. However, the US was strengthening and Asia – a major market for the brand – was “certainly showing signs of recovery”, Ms Ferry said.
Sales nevertheless dropped by nearly a 10th in Asia, with the key Chinese market seeing a 7% decline over the la.
