Strong pound hammers Burberry's profit | RetailDetail

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

Starbucks fast-tracks design of recyclable, compostable cup


Coffee chain Starbucks is committing 10 million dollars (8 million euros) to bring a fully recyclable and compostable cup to the market within the next three years. Currently, some six billion Starbucks cups are distributed per year, an impressive 1% of the world's total. 

HelloFresh buys American competitor and achieved strong growth in 2017


HelloFresh’ turnover last year grew 52 %, bringing it closer to profitability. The German meal box delivery service believes it will become profitable before the end of the year.

Spar makes ambitious entry into Greece


Spar International has set its sights on Greece as the next country to conquer and lead as the foremost independent food retail chain. Spar Hellas will cooperate with Asteras and Mesis to develop more than 500 Spar stores over the next four years.

Dr. Oetker buys half of Freixenet


Henkell, which is Dr. Oetker’s drinks division, has acquired slightly more than half of cava brand Freixenet’s shares. Following two years of negotiations, both companies struck a deal, even though the German food giant will not reign supreme at Freixenet.

Picnic confirms German arrival


Picnic's co-founder Michiel Muller has confirmed earlier rumours that his Dutch online supermarket was trialing in Germany. He added that the trials were done under the brand name Sprinter.

Délifrance joins FFC's portfolio


Dutch Franchise Friendly ConceptsDélifrance Benelux acquisition is in full swing. The franchise organization will obtain the French sandwich chain’s Benelux master franchisee on 1 April.

Back to top