LONDON — The protests in Hong Kong may have clobbered sales growth in the all-important third quarter, but Burberry has remained defiant, raising its revenue guidance for the full fiscal year and sticking by its restructuring plan.
The stock market wasn’t so optimistic, though, sending Burberry’s shares down 5 percent on Wednesday to close at 21.50 pounds.
Hong Kong, which generated 8 percent of Burberry’s sales last year, contributed just 4 percent in the third quarter due to a decline in Mainland Chinese tourists and temporary store closures from the ongoing protests.
Retail revenue was 719 million pounds in the three months to Dec. 31, with growth slowing to 1 percent at reported rates, and 2 percent at constant exchange.
In the first half, revenue was up 5 percent at reported rates and 3 percent at constant exchange.
Last year’s numbers should have been easy to beat: During the corresponding period in 2019, Burberry’s retail revenue fell 1 percent at reported exchange rates and 2 percent at constant ones.
The third quarter’s 1 percent growth came from products designed by chief creative officer Riccardo Tisci, in particular his latest collection of sneakers, which saw double-digit growth, and from more full-price sales.
Part of Burberry’s strategy has been to push full-price merchandise;
The stock market wasn’t so optimistic, though, sending Burberry’s shares down 5 percent on Wednesday to close at 21.50 pounds.
Hong Kong, which generated 8 percent of Burberry’s sales last year, contributed just 4 percent in the third quarter due to a decline in Mainland Chinese tourists and temporary store closures from the ongoing protests.
Retail revenue was 719 million pounds in the three months to Dec. 31, with growth slowing to 1 percent at reported rates, and 2 percent at constant exchange.
In the first half, revenue was up 5 percent at reported rates and 3 percent at constant exchange.
Last year’s numbers should have been easy to beat: During the corresponding period in 2019, Burberry’s retail revenue fell 1 percent at reported exchange rates and 2 percent at constant ones.
The third quarter’s 1 percent growth came from products designed by chief creative officer Riccardo Tisci, in particular his latest collection of sneakers, which saw double-digit growth, and from more full-price sales.
Part of Burberry’s strategy has been to push full-price merchandise;
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