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 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.
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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.
The designer has always been an arch perfectionist, a quality that has been central to his success but which clashes with the demands on creative directors today, writes Imran Amed.
This week, Prada and Miu Miu reported strong sales as LVMH slowed and Kering retreated sharply. In fashion’s so-called “quiet luxury” moment, consumers may care less about whether products have logos and more about what those logos stand for.
The luxury goods maker is seeking pricing harmonisation across the globe, and adjusts prices in different markets to ensure that the company is”fair to all [its] clients everywhere,” CEO Leena Nair said.
Hermes saw Chinese buyers snap up its luxury products as the Kelly bag maker showed its resilience amid a broader slowdown in demand for the sector.