LONDON, United Kingdom — British luxury brand Burberry reported a 1 percent rise in third-quarter same store sales, just shy of market forecasts of 2 percent growth, before next month's launch of the debut collection by its new designer Riccardo Tisci.
Chief executive Marco Gobbetti said he was pleased with progress in shifting the brand further upmarket, and said the company was maintaining its full-year guidance of stable revenue and adjusted operating margin at constant exchange rates.
The company, which is traditionally known for its trench coats, reported retail revenue in the 13 weeks to December 29 of £711 million ($922 million), down 2 percent at constant exchange rates.
Sales in mainland China were up in mid-single digits in the quarter, it said, while Europe saw a small improvement in tourist spending quarter-on-quarter.
But it said its performance in the Americas, where it is focusing its wholesale distribution on higher end retailers, was impacted by softer footfall trends.
Tisci's first runway collection, which re-imagined the trench coat and featured Burberry's traditional colour palette of camel, red and black, was applauded by critics and buyers when it was shown in September.
Burberry said on Wednesday that its wholesale clients had responded positively to the new commercial product lines.
By Paul Sandle; editors: Kate Holton and James Davey.