The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — British trenchcoat maker Burberry Group Plc reported estimate-beating revenue as Asia Pacific returned to growth, the second positive sign in a week for Europe's struggling luxury-goods industry.
Third-quarter retail revenue rose 4 percent on a currency-neutral basis, the London-based company said Wednesday, compared with the median analyst estimate for a 3 percent gain. Bags were particularly strong after Burberry introduced products such as the Bridle model, which sells for up to £16,000 ($19,740).
The results will bolster optimism that the luxury business may have bottomed out after Cartier owner Richemont reported a return to growth last week. Burberry said its Asia Pacific division had a sales gain in the low single digits, marking a rebound for its largest unit which has been struggling for growth against a backdrop of weaker demand.
The stock rose 0.2 percent to 1,596 pence at 9:30 am in London.
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Highlights of the quarter included a record number of views of the company's Christmas ad and strong demand for new products, chief executive officer Christopher Bailey said in a statement. Bailey is due to hand over the reins to Marco Gobbetti in July and will return to steering Burberry's creative direction as part of a management re-shuffle that also includes a new finance chief, Julie Brown, who started on the job Wednesday.
Other third-quarter highlights included:
By Thomas Buckley; editors: Matthew Boyle and Paul Jarvis.
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