Burberry shares rise despite lacklustre salesComments Off on Burberry shares rise despite lacklustre sales
Burberry was back in fashion with the City earlier after boss Christopher Bailey struck a confident note despite revealing lacklustre sales.
The British brand, which revealed a boardroom overhaul this week, is struggling as the luxury-goods sector battles weakened demand in Hong Kong and Europe.
Like-for-like sales fell 3% with retail revenues flat at £423 million in the three months to June 30.
The figures beat forecasts and the City was also cheered by news that favourable exchange rates could boost profits by £40 million.
Shares rose 49p to 1252p.
But bosses highlighted Burberry’s performance in the UK, where shoppers flocked to buy a range of new rucksacks and efforts to cut costs by £100 million by 2019 were paying off.
Bailey said this “gives us real confidence for the future”.
He will be replaced by rival Céline’s Marco Gobbetti next year, and instead Bailey will take on the roles of chief creative officer and president. Finance boss Carol Fairweather will leave in 2017.