Burberry sales slow on weaker footfall in Americas
Source - SMW
UK fashion brand Burberry said Wednesday comparable store sales slowed from a year earlier over the key festive period as it continued its transitions to a super-luxe brand.
Comparable store sales were up 1% globally in the last three months of 2018, compared with a 2% increase in the same period last year.
The slowing sales growth comes as the company navigated its business between the new branding and vision for Burberry and the previous collection in store that does not yet reflect its new positioning.
Regional sales growth was mixed; Mainland China was up mid-single digits, EMEIA showed a small improvement in tourist spending quarter on quarter, while Americas was impacted by softer footfall trends. Burberry maintained its guidance at constant currency for fiscal 2019 and said it remained on track to deliver cost savings of £100m.
'I am pleased with our progress in the quarter as we continued to build brand heat around our new creative vision and shift consumer perception of Burberry. Excitement is growing ahead of next month's launch of Riccardo's debut collection,' said Marco Gobbetti, Chief Executive Officer.
'We will continue to manage the business dynamically as we reposition the brand. We confirm our outlook for the full year.'