Strong pound hammers Burberry's profit

Strong pound hammers Burberry's profit

Lower sales in Hong Kong and an overly strong British pound have forced Burberry to lower its profit forecast for the current fiscal year.

First drop since 2009

British fashion label Burberry now expects a 40 million pound (55 million euro) profit drop in its current fiscal year compared to its previous forecast. In its previous fiscal year, its pre-tax profit dropped 1 % to 455.8 million pounds (640 million euro), its first drop since 2009.

 

Burberry's stores in Hong Kong have to deal with lower customer levels, which has impacted its sales. Its South and North American growth is also slowing down, but luckily for Burberry, Europe, the Middle East, India and Africa continue to perform well.

 

The strong British pound has also impacted its bottom line, just like it did last year: exchange rate fluctuations lowered its profit 38 million pounds (53 million euro) back then.

Questions or comments? Please feel free to contact the editors


Small Belgian brewery conquers Brazil thanks to playing cards

13/09/2017

Het Nest, a small brewery from Turnhout, will get its beers brewed in Brazil as well. It has struck a deal with Cervejaria Premium Paulista, which will brew and distribute the beers locally.

Price cuts drive 25 % more customers to Whole Foods

12/09/2017

Supermarket chain Whole Foods welcomed an additional 25 % of customers in the first few days following Amazon’s price cuts.

Ter Beke enters British food service industry

12/09/2017

Belgian food group Ter Beke has acquired a 90 % stake in British competitor KK Fine Foods for an undisclosed fee. The current shareholders hold onto the other 10 %.

Godiva wants to conquer the world through supermarkets

12/09/2017

Belgian praline brand Godiva will soon sell its chocolate in supermarkets all over the world after signing a deal with chains like Albert Heijn and Sainsbury’s. Previously, it sold nearly all its chocolate through its own store network.

Insight: Xavier Piesvaux' seven labours at Delhaize

10/09/2017

Can one French and several Dutch managers do what the Belgian management failed to do these past few years at Delhaize Belgium? Its new CEO will face plenty of challenges: we count at least seven.

Nestlé USA acquires food manufacturer Sweet Earth

08/09/2017

Nestlé USA has acquired American Sweet Earth for an undisclosed fee. The company mainly manufactures meat replacements, a rapidly-growing market, but also several frozen meals.

Back to top