Burberry Asia sales static
Burberry Asia sales were largely unchanged in the past financial year, but the luxury retailer says it noticed an upturn in the second half.
Mainland China delivered high single-digit percentage growth, accelerating through the year to deliver double-digit percentage growth in the fourth quarter, the company said in its results filing.
“Hong Kong improved through the period although remained negative for the full year, impacted by lower footfall partially offset by improved conversion.”
In Korea, Burberry’s third largest Asian market, sales were impacted by both the macro environment and the company’s decision to reduce promotional activity.
Global Burberry sales were £2.8 billion, down 2 per cent underlying, and up 10 per cent at reported foreign exchange rates.
Retail, which accounted for 77 per cent of group revenue, rose 3 per cent underlying with same-store sales up 1 per cent. Wholesale sales fell 14 per cent and licensing by 48 per cent.
Pre-tax profit rose £42 million to £462 million.
CEO and creative chief Christopher Bailey said 2017 was a year of transition for Burberry in a fast changing luxury market.
“The actions we have taken to lay the foundations for future growth are yielding early benefits and I remain confident that these will build over time. Marco Gobbetti assumes the role of CEO from July. With his extensive experience in the sector, we will build on these foundations to elevate and strengthen the brand further and take Burberry to the next level as a global luxury retail and digital business.”
The company achieved targeted cost savings of £20 million during the full year, which it expects to increase to around £50 million in 2018 and to at least £100 million annualised by 2019.