Burberry slowdown not as bad as expected
11/10/2012
Burberry finance chief Stacey Cartwright said the "aspirational luxury consumer" had been hit by a faltering global economy, but wealthier shoppers continued to spend.
The group sold a higher proportion of goods from its top-end Prorsum and London lines in its fiscal second quarter, as well as a larger share of goods at full price, she told reporters.
She said the first-half retail/wholesale operating margin was now expected to be at least in line with the same period last year, rather than lower as previously guided.
Cartwright denied there was a problem with the Burberry brand, and said the slowdown was due to broad economic factors and would be reflected in results by other luxury companies. "Not everybody has reported yet," she said.
Sales at stores open over a year rose 1% in the three months to September 30, its fiscal second quarter.
Trading in Britain had suffered during the London Olympic Games and while demand in China had slowed, it remained robust in Hong Kong, as well as France and Germany.
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