British fashion label Burberry experienced another rough quarter, with only a slight 1 % turnover increase in its third quarter, while like-for-like turnover remained level.
Burberry's third quarter turnover reached 603 million pounds (793 million euro), mainly because of lower Hong Kong and Macau sales. Its Hong Kong store even generated 20 % fewer turnover in the third quarter, which ended on 31 December. Without Hong Kong and Macau, Burberry's turnover would have increased 3 %, while Japanese turnover grew more than 50 % thanks to a new store.
The weaker Hong Kong results are because Chinese tourists spend lower quantities and these usually represent about 40 % of Burberry's total turnover.A third of these tourists come from the Asia / Pacific region.
European results were also a mixed bag: Italy and Spain experienced turnover growth of more than 20 % while France had a setback. The UK market was harsh, also because it welcomed fewer tourists from Asia and the Middle East.