British luxury brand Burberry’s retail sales fell seven percent to 659 million pounds (around 779 million euros) in the third quarter. Adjusted for exchange rate changes, the value fell by three percent. Comparable store sales fell four percent in the reporting period, while analysts had previously forecast a decline of twelve percent.
The company said that given its third-quarter results, it expects second-half results to largely offset its first-half adjusted operating loss, despite the uncertain macroeconomic environment.
“We are encouraged by the response to our outerwear campaign, It’s Always Burberry Weather, and our Christmas campaign, Wrapped in Burberry. “The acceleration of our core categories reinforces our belief that Burberry has the greatest opportunity where we have the greatest authenticity and that our strategic plan will deliver sustainable, profitable growth over time,” said Joshua Schulman, Chief Executive Officer of Burberry.
Decline in Asia Pacific
The company said sales in the Americas rose four percent, driven by local spending. Customers developed worldwide in line with the respective regional dynamics. In the EMEIA region, sales fell by two percent, with both locals and tourists experiencing a comparable decline. The EMEIA customer group remained stable worldwide.
In Asia Pacific, sales fell nine percent, with mainland China recording a seven percent decline. Globally, sales to customers from mainland China remained stable compared to the previous year and contributed to a four percent increase in Japan. In South Asia Pacific, sales fell 19 percent, while South Korea recorded a 12 percent decline.
When viewed by product group, outerwear and scarves continued to perform above average worldwide.
Burberry’s Christmas campaigns receive positive response
Burberry further explained that in the third quarter, the company implemented measures to promote Burberry Forward, which resulted in improved brand appeal, accelerated performance of outerwear and scarves, and increased conversion.
The company launched the “It’s Always Burberry Weather” outerwear campaign and the “Wrapped in Burberry” holiday campaign during the quarter and enhanced in-store visuals with festive windows highlighting outerwear and scarves.
To strengthen its brand presence, Burberry also brought its creative and sales teams together at its newly renovated headquarters in London to improve collaboration and productivity.
This article previously appeared on Fashionunited.uk and was created using digital tools translated.
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