# Burberry Group plc Solid performance in retail

- Link: https://www.directorstalkinterviews.com/burberry-group-plc-solid-performance-retail/412754377
- Published: 2018-07-11T07:51:38+01:00
- Author: Charlotte Edwards

**[Burberry Group plc](https://www.directorstalkinterviews.com/ftse-company/burberry-group/brby.l)**(
LON:BRBY) today announced first quarter trading update

Continued progress executing plan with comparable sales +3%

> **Burberry Group, Marco Gobbetti, Chief Executive Officer, commented:**
> “We are pleased with our progress in the quarter. The team has embraced Riccardo’s
> creative vision and is working well together as we prepare for his debut collection
> in September, the next step in our journey. While we know it will take time to
> achieve our ambitions, our progress to-date and the energy in and around the company
> give me confidence for the future.”

**Highlights**

· Solid performance in retail in a period of transition, with comparable sales +
3%

· Strategically investing in key markets including relocating and expanding our 
flagship store in Dubai and closing an additional two outlets

· Pop up stores showcased new handbags in Beijing, Dubai, New York and Seoul

· Completed global roll out of new digital clienteling tool supporting enhanced 
customer service

· Farfetch collaboration performing ahead of our expectations

· Announced moving to a new model of engaging consumers with frequent and sometimes
unexpected drops of fresh product, including:

– Limited-edition pieces from Riccardo’s inaugural collection available to buy through
a series of instant drops from September

– Vivienne Westwood collaboration of re-imagined iconic styles to launch in select
stores in December

· Luxury leather goods acquisition proceeding as planned

· Commenced £150m share repurchase programme

**First quarter retail performance**

· Growth led by local and returning top customers

· Newly launched handbags, such as the Belt and D-ring performed well, a positive
early sign for the transformation of our leather offer

· Refreshed heritage trench rollout is now live in over 80 stores

· Rainwear grew with strength from Car Coats and seasonal tropical gabardine

· Customers are responding to our more complete wardrobe offer and full look merchandising

Retail revenue 13 weeks to 30 June

  |   |   |   |

% change

  |  
 |

£ million

  |

2018

  |

2017

  |   |

Reported FX

  |

CER^(*)

  |  
 |

Retail Revenue

  |

479

  |

478

  |   |

0%

  |

3%

  |  
 |

      Comparable sales

  |

3%

  |

4%

  |   |   |   |

*Growth at CER includes marginally negative net space contribution, impact of retail
calendar +0.2% and IFRS 15 -0.5%. For more detail see Appendix

· Comparable sales +3%

– Asia Pacific grew by a mid-single digit percentage

Mainland China grew and Hong Kong, Korea and Japan all benefited from Chinese spend
shifting more to Asian tourist destinations within the region

– EMEIA declined by a low single digit percentage

Softer tourist demand impacted both the UK and Continental Europe and the Middle
East remained weak due to macro factors

– Americas grew by a high single digit percentage

Improved trends seen in the fourth quarter of FY 2018 continued, with footfall in
the US positive

– Strong growth in digital

Direct-to-consumer growth was led by Asia Pacific and mobile is now the largest 
digital channel

FY 2019 outlook

· No change to guidance at CER, some easing of currency headwind at current rates*

· On track to deliver cumulative cost savings of £100m

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