US tourist boom lifts Burberry’s British shops

BURBERRY saw £591m wiped off its value yesterday despite the fall in the pound boosting the number of Americans coming to its UK shops by 90pc.

Shares in the luxury fashion brand fell 8pc even though the strong dollar meant UK stores were hugely attractive for tourists.

Reporting second-half results yesterday, Burberry said retail revenue – including stores and online – rose 3pc to £1.3bn compared with the same period last year.

However overall revenue – including wholesale – fell 1pc to £1.6bn as it suffered from the tough US market.

Success came from its leather goods category, which experienced mid-teen percentage growth, and UK sales have stayed strong.

Burberry has brought in new blood with Marco Gobbetti, from French brand Celine, due to take over as chief executive from long-time design boss Christopher Bailey, who will remain as chief creative officer. Burberry has signed a deal with US cosmetics brand Coty, which will see the Rimmelmaker manufacture its beauty range under licence.

While Julie Brown, chief operating and financial officer at Burberry, said that the brand would retain creative control, it will result in fewer jobs in Britain. The Mail reported this week that between 150 and 200 people had been told their jobs were under threat, but Brown said the number would be closer to the lower end.

The changes come as Burberry completes the first stage of a three-year turnaround plan – aiming to save £100m a year by 2019.

Elsewhere Burberry said the pound’s plunge was now set to flatter underlying retail and wholesale profit by about £130m, up from the £120m pencilled in earlier this year.

The company’s shares fell 7.9pc, or 135p, to 1566p.