Burberry sales up but fall in tourist numbers is a concern
FASHION house Burberry bumped up its sales in the first quarter but has warned that tourist numbers are falling in the UK.
Burberry — a label favoured by First Lady Melania Trump — said its sales grew in the 13 weeks to June 30, up from £478m to £479m.
Mrs Trump wore a Burberry trench coat as she arrived with her husband President Donald Trump on Tuesday ahead of a two-day Nato summit in Melsbroek, Belgium. The couple arrive in London today.
Burberry warned that sales in the UK and Europe had been knocked due to weaker tourist demand but that Chinese tourists had lifted sales in Hong Kong, Korea and Japan.
The Asia Pacific region drove growth in Burberry’s digital sales, with mobile sales now making up the largest proportion of purchases made online.
Marco Gobbetti, Burberry’s chief executive, said: “While we know it will take time to achieve our ambitions, our progress to date and the energy in and around the company give me confidence for the future.”
Burberry’s shares were down 3.47% or 73p to 2,028p following the news.
“Burberry has a new creative impetus, a commitment to pushing the exclusivity of the brand ever higher and a focus on driving down costs whilst pushing sales effectiveness higher,” said Steve Clayton of Hargreaves Lansdown.
“The success of these will determine the stock’s potential, but it will be years, not hours or days, before the final whistle blows.”