For the third quarter Burberry’s revenue was up one per cent. Sales were up three per cent. Growth was led by full-price sales, and while this was partially offset by lower levels of markdown inventory being available for the clearance sale and continued disruption in Hong Kong, that full-price focus meant the company still came out ahead. The size of the dent Hong Kong’s woes are making in luxury revenues could be seen from the fact that Asia Pacific sales only grew by a low-single-digit percentage even though Mainland China was up in the mid-teens. Hong Kong’s sales halved — a giant sales fall in what should be one of luxury’s most important markets.
EMEIA grew by a high-single-digit percentage, supported by tourist spend, which particularly benefited Continental Europe. And the Americas region was stable as the US grew by a low-single-digit percentage, although the figures were partially offset by a weaker Canada performance. Burberry also continued to see growth in apparel while accessories benefited from a fuller leather goods offering.
The company now expects the full fiscal year’s revenue to grow by a low-single-digit percentage. And the adjusted operating margin is expected to remain broadly stable, despite the impact of the disruption in Hong Kong.
