Luxury Burberry Sales Have Changed

Burberry group (Burberry) released a report on Wednesday that Burberry's revenue reached 343 million pounds in the three months to September 30th, down 5% in fixed currency terms.

Burberry said the overall revenue decline in the 2 quarter was less than expected, indicating that sales in the second half of this year have improved.

Luxury companies were hit hard during the recession, but Burberry, known for its red and black lattices, quickly responded: cutting costs, layoffs, and selling stocks.

Its share price fell 70% last year, and this year it almost completely lost its ground. Compared with DJStoxx's personal and household commodity index, its share almost doubled.

Burberry's retail revenue increased by 16 percentage points, of which the same store sales increased by 5%, of which the over two digit growth in the European and Asian markets offset the decline in sales in the US and Spain.

In addition, wholesale revenue dropped by 21 percentage points, while franchise revenue decreased by 9%.

Burberry operates 122 retail outlets, 255 franchised stores and 90 franchisees, and develops electronic commerce in 25 countries.

Burberry said it expects to add about 15 mainstream stores throughout the year.

Burberry expects wholesale revenue to drop by 15% in the second half of the year, and boost the franchise sales revenue for the whole year, from 5 to 10 percentage points from the previous forecast of 10 to 15 percentage points.