Burberry sees consecutive growthWednesday, 15 October 2008
Burberry said Spain remains a difficult market due to low consumer confidence in the poor economic environment. In the first half, total sales in Spain were down 20%. No improvement is planned in Spain wholesale for the second half of the year. Burberry continues to implement a series of initiatives in this market, as discussed at the time of the preliminary results in May 2008.
Operating profit for the first half of the year is expected to be in line with market estimates. A lower percentage of merchandise was sold at full price, impacting gross margin, which was offset by tight control of discretionary expenses. Inventory at 30 September 2008 is expected to be about £60m higher than at 31 March 2008 (£269m), including the currency translation impact.
Americas remained the best performing region, while Europe and Asia both also showed growth in comparable store sales. There was good growth in Korea and smaller markets in Asia including Singapore and Australia and solid performances in France, Germany and the UK. Spain remained down double-digit.
Image: AW09 campaign