British fashion giant Burberry has reported a 3 per cent drop in like-for-like sales in first quarter of the year, creating difficulties for Marco Gobbetti who is soon to take over the position from Christopher Bailey next year as the brand’s CEO.
It has been reported that Burberry is struggling to make up for declining tourist visitation in Europe, coupled with sales dip in mainland China and Hong Kong. It may be mentioned here that sales in Hong Kong showed slight improvement, yet remained mired in decline.
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However, the luxury group is optimistic about future as ‘Brexit’ has encouraged foreign tourists to shop in Britain. The brand has estimated that its adjusted profit would be boosted by about 90 million pounds if exchange rates remain at current level, up from its earlier 50 million pounds forecast.
“There has been a good customer response to innovation and newness, while offering an elevated service and more in-store craftsmanship events to enhance customer engagement… We continue to focus on managing our business with agility whilst implementing the strategies we outlined in May, to position Burberry for long-term growth. These plans are now well underway and on track to deliver our financial goals and this progress, together with our recent management appointments, gives us real confidence for the future,” the company said.
