Burberry boosts sales but warns over tourist numbers
Burberry bumped up its sales in the first quarter but has warned that tourist numbers are falling in the UK.
It said sales grew by 3pc in the 13 weeks to June 30, with revenue up from £478m (€540m) to £479m (€542m).
The fashion house warned sales in the UK and Europe had been knocked due to weaker tourist demand but that Chinese tourists had lifted sales in Hong Kong, Korea and Japan. The Asia Pacific region drove growth in Burberry's digital sales, with mobile sales now the largest proportion of purchases made online.
Marco Gobbetti, Burberry's CEO, said: "While we know it will take time to achieve our ambitions, our progress to date and the energy in the company give me confidence for the future."
Burberry is gearing up for the first collection from its new chief creative officer, former Givenchy designer Riccardo Tisci. Pieces from the collection will be launched through "instant drops" from September.
Burberry is also collaborating with veteran British designer Vivienne Westwood, who is creating pieces for the brand to be sold from December.
The fashion business is also working with Farfetch to aid distribution of products sold online and said the partnership was "performing ahead of our expectations".
It emerged last month that Burberry's former chief creative officer, Christopher Bailey, is to walk away from the fashion chain with a bumper pay-off of around £13m (€14.7m).