Burberry sales slowed by Hong Kong protests
BURBERRY said sales in Asia slowed in the third quarter of its year to “low single-digit growth” after the Hong Kong protests deterred shoppers from visiting its stores.
Chief financial officer Carol Fairweather said footfall across its Hong Kong stores was “significantly down” because of the protests, which made some of the city’s core shopping districts inaccessible.
Like-for-like sales fell slightly in the high margin market, which accounts for 10 per cent of Burberry’s revenues. “[The decline] was more about market sentiment than the specific demonstrations. People weren’t coming out shopping or travelling to Hong Kong,” Fairweather said.
However, Burberry said a “robust performance in mainland China and Korea” helped offset the decline. Shares nevertheless fell 1.3 per cent on news of the slowdown.
Burberry’s total retail sales excluding the impact of foreign exchange rose by 15 per cent in the 31 Months to 31 December to £604m.
Sales at stores open more than a year rose eight per cent – ahead of expectations – while the Americas and Europe, Middle East, India and Africa enjoyed double digit growth.
Fairweather said the strong performance over Christmas was driven by demand for its cashmere scarves and Heritage trench coat, which featured in its festive advertising campaign starring Romeo Beckham.
Its runway-inspired ponchos, worn by celebrities including Sarah Jessica Parker, also received an “exceptional response” with over 70 per cent of shoppers choosing to have them personalised with their initials.