- Prachi Singh |
In its first quarter update, Burberry Group Plc said, that the company witnessed a solid performance in retail in a period of transition, with comparable sales increase of 3 percent. Retail revenues in the quarter increased 3 percent CER to 479 million pounds (635.5 million dollars).
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"We are pleased with our progress in the quarter. The team has embraced Riccardo's creative vision and is working well together as we prepare for his debut collection in September, the next step in our journey. While we know it will take time to achieve our ambitions, our progress to-date and the energy in and around the company give me confidence for the future," said Marco Gobbetti, Burberry’s Chief Executive Officer in a statement.
Highlights of Burberry’s first quarter performance
In the first quarter, Burberry said, Asia Pacific grew by a mid-single digit percentage. While Mainland China grew, Hong Kong, Korea and Japan all benefited from Chinese spend shifting more to Asian tourist destinations within the region. Sales in the EMEIA region declined by a low single digit percentage and softer tourist demand impacted both the UK and Continental Europe and the Middle East, the company said, remained weak due to macro factors. However, Americas grew by a high single digit percentage during the quarter under review. The company added that direct-to-consumer growth was led by Asia Pacific.
The company further said that it is strategically investing in key markets including relocating and expanding its flagship store in Dubai and closing additional two outlets. Its pop up stores showcased new handbags in Beijing, Dubai, New York and Seoul and the company also completed global roll out of new digital clienteling tool supporting enhanced customer service.
Burberry added that Farfetch collaboration is performing ahead of its expectations and limited-edition pieces from Riccardo's inaugural collection will be available to buy through a series of instant drops from September, while Vivienne Westwood collaboration of iconic styles would be launched in select stores in December.
The company further added that it is on track to deliver cumulative cost savings of 100 million pounds (132.7 million dollars).