In the first quarter of its fiscal year, British fashion label Burberry’s turnover grew 4 %, despite challenging market conditions that showed in its lower like-for-like turnover.
Fewer tourists
Burberry’s retail turnover in the first quarter reached 423 million pounds (500 million euro), up 4 % compared to last year. If one removes stores that were opened in the past 365 days, turnover did drop 3 %.
In its home territory, Burberry did manage turnover growth, but in other important markets (like France and Italy), it suffered because of fewer tourist sales. Chinese sales continue to lag behind, while online sales surged upward – particularly on mobile devices, because the company’s web shop welcomed an additional 60 % through mobile devices alone.
New CEO
Over the next fiscal year, Burberry aims to open another 15 new stores, but it will shut down as many as it opens. For the first half of the year, it expects a 10 % wholesale turnover increase if exchange rates remain stable. For its full fiscal year, it targets a 90 million pound (slightly above 100 million euro) profit.
Starting next year, Marco Gobbetti will become Burberry’s new CEO. He will succeed Christopher Bailey, who will turn his attention to the fashion’s company creative direction once more.
