Burberry posted a 1 percent rise in third-quarter sales on Thursday, falling short of expectations. Buoyed by growth in China, the London-based brand said such results are heavily tied to the uncertain outlook for the luxury sector as a whole. The 160-year-old company noted the mainland China market had returned to growth but performance was weighed by Hong Kong and Macau. Retail revenue grew by 1 percent to 603 million pounds ($869.53 million) helped by strong demand in Europe, per Reuters.
Per WWD: Burberry said in its trading statement that third-quarter results fell short of internal expectations, remaining flat at reported rates and increasing 1 percent on an underlying basis. Sales in the October to December period were 603 million pounds, or $917 million, in what chief creative and chief executive officer Christopher Bailey called “a tougher environment than expected” for the luxury sector as a whole. Currency conversions are at average exchange rates for the period in question.
The report comes on the heels of Chief Creative and Chief Executive Officer Christopher Bailey’s twenty month-mark in his dual-role, following former CEO Angela Ahrendts’ move to Apple. As noted this week, with the share price languishing at three-year lows, the 44-year-old still has a point to prove and is now facing a slowdown in the global luxury market that could pose the biggest challenge to his executive career.