Poor UK Sales Dent Burberry's Quarter
The London-based group has reported sales of ?61 million (?29m) for the three months to 1 January 2005, up from ?57 million in the comparable period and a 7 percent increase at constant exchange rates.
Retail sales, which account for 59 percent of total sales, inched up 1 percent to ?6 million, or 6 percent excluding currency effects.
Group's Chief Executive Officer, Rose Marie Bravo said, "In the context of a highly promotional environment, Burberry held its course and delivered a solid result for the quarter."
The group stated that continental markets in Europe generally continued to perform well while business in the UK was weak.
In Asia, Korea continued to be volatile due to the weak macro environment, while Hong Kong continued its vigorous growth, Burberry added. In the US, retail sales increased in line with space growth.
Wholesale sales, which contribute 29 percent of sales, increased by 2 percent to ?7 million in the quarter, while licensing sales rose 15 percent to ?8 million. In the nine-month period, total sales increased by 6 percent to ?09 million.