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Burberry's sales down 3% in 'challenging' first quarter | Burberry's sales down 3% in 'challenging' first quarter |
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Burberry has reported a 3% fall in like-for-like sales and flat retail revenues of £423m after what it called a "challenging" first quarter. | Burberry has reported a 3% fall in like-for-like sales and flat retail revenues of £423m after what it called a "challenging" first quarter. |
On Monday, Burberry announced chief executive Christopher Bailey would be replaced after two years in the post. | On Monday, Burberry announced chief executive Christopher Bailey would be replaced after two years in the post. |
The results indicate the task ahead for his replacement Marco Gobbetti, who will join the company next year. | The results indicate the task ahead for his replacement Marco Gobbetti, who will join the company next year. |
The firm is struggling to counter a downturn in mainland China and Hong Kong and fewer tourists in Europe. | The firm is struggling to counter a downturn in mainland China and Hong Kong and fewer tourists in Europe. |
It said its outlook for wholesale revenues, particularly in the US, for both the first and second halves of the year remained "cautious" in both fashion and beauty. | |
However, it is benefiting from a drop in the value of the pound after the UK voted to leave the European Union last month. | However, it is benefiting from a drop in the value of the pound after the UK voted to leave the European Union last month. |
Burberry said its adjusted profit would be boosted by about £90m if exchange rates remain at current levels. | Burberry said its adjusted profit would be boosted by about £90m if exchange rates remain at current levels. |
Its new stores helped boost sales by 3% and online sales grew "strongly in all regions". | |
Mr Gobbetti has run LVMH-owned luxury label Celine since 2008 and was chief executive of Givenchy for the previous four years. | Mr Gobbetti has run LVMH-owned luxury label Celine since 2008 and was chief executive of Givenchy for the previous four years. |
After Mr Gobbetti's appointment, Mr Bailey will become president and remain chief creative officer - the role he held before also taking on the position of chief executive. | After Mr Gobbetti's appointment, Mr Bailey will become president and remain chief creative officer - the role he held before also taking on the position of chief executive. |
Many shareholders had been unhappy with Mr Bailey's performance as both chief executive and chief creative officer and had called for change at the top. | Many shareholders had been unhappy with Mr Bailey's performance as both chief executive and chief creative officer and had called for change at the top. |
In May, the company reported a £29m fall in annual pre-tax profits for the year to 31 March to £415.6m and said it expected the "challenging environment for the luxury sector" would continue. | In May, the company reported a £29m fall in annual pre-tax profits for the year to 31 March to £415.6m and said it expected the "challenging environment for the luxury sector" would continue. |
Burberry shares have lost more than a third of their value over the past 12 months after sales in Asia - particularly Hong Kong - fell as Chinese consumers reined in spending. About a third of Burberry sales come from Asia. | Burberry shares have lost more than a third of their value over the past 12 months after sales in Asia - particularly Hong Kong - fell as Chinese consumers reined in spending. About a third of Burberry sales come from Asia. |
Burberry said in May that it would reduce its product range and focus more on handbags in response to slowing sales. | Burberry said in May that it would reduce its product range and focus more on handbags in response to slowing sales. |