Burberry sales Slammed In Q3 by way of Weakening China Market
Peter MondroseOctober 15, 2015
fashion retailer Burberry ignored the mark as retail earnings grew by way of handiest 2% in the first half of the year, down from 8% in the first quarter, and neatly below analysts’ expectations.
the corporate printed on Wednesday that gross sales in Hong Kong “decelerated additional” in the second quarter, while mainland China sales “reduced reasonably” within the first 1/2.
“The external surroundings turned into more difficult all through the half,” mentioned Burberry CEO Christopher Bailey.
slow gross sales in China shouldn’t be a good sign for the company, which has taken with the area as a key driver for its industry.
“worries a few China/Asia slowdown are justified with the legendary chinese language consumer spending much less on their so much cherished luxurious items at house, even though they proceed to ring up the tills in Japan and Europe thanks to currency advantages,” Mike van Dulken, head of research at Accendo Markets, advised CNNMoney.
the company says it has taken “swift action” to adjust costs and minimize slipping sales in its luxury market.
“Our plans for the festive season place us well to return to a extra positive sales trend within the all-necessary 2nd 1/2,” Bailey said.
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