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You can find the current article at its original source at https://www.theguardian.com/business/2018/jan/17/burberry-sales-slump-chinese-shopping-spree-ends-tourism
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| Version 4 | Version 5 |
|---|---|
| Burberry UK sales slump as Chinese shopping spree ends | Burberry UK sales slump as Chinese shopping spree ends |
| (3 months later) | |
| Burberry has reported a slump in sales as a luxury tourism shopping spree in the UK comes to an end. | Burberry has reported a slump in sales as a luxury tourism shopping spree in the UK comes to an end. |
| The British brand known for its trenchcoats said sales at established UK stores were down by about 8% in the three months to 31 December, largely because of a drop in the number of high-spending visitors from China. | The British brand known for its trenchcoats said sales at established UK stores were down by about 8% in the three months to 31 December, largely because of a drop in the number of high-spending visitors from China. |
| Global retail sales at Burberry’s established stores rose 2%, disappointing expectations in the City of a 3% rise. | Global retail sales at Burberry’s established stores rose 2%, disappointing expectations in the City of a 3% rise. |
| There was also disappointment that the brand did not announce a new creative director to replace Christopher Bailey, who will leave in March after 17 years. | There was also disappointment that the brand did not announce a new creative director to replace Christopher Bailey, who will leave in March after 17 years. |
| Shares in Burberry fell 8% to £16.43 in early trading on Wednesday after the company said Chinese tourists, who made up a large proportion of overseas shoppers in the UK last year, were heading elsewhere, including Japan. | Shares in Burberry fell 8% to £16.43 in early trading on Wednesday after the company said Chinese tourists, who made up a large proportion of overseas shoppers in the UK last year, were heading elsewhere, including Japan. |
| A year ago, Burberry’s UK sales rose by 40% as overseas bargain hunters made the most of the slump in sterling after the Brexit vote. | A year ago, Burberry’s UK sales rose by 40% as overseas bargain hunters made the most of the slump in sterling after the Brexit vote. |
| Some shoppers consider exchange rates and travel fees when deciding where to buy luxury handbags or trenchcoats, which can cost more than £1,000 each. The fall in the value of the pound made the UK an attractive shopping destination in late 2016, but sterling has since stabilised. | Some shoppers consider exchange rates and travel fees when deciding where to buy luxury handbags or trenchcoats, which can cost more than £1,000 each. The fall in the value of the pound made the UK an attractive shopping destination in late 2016, but sterling has since stabilised. |
| Burberry said it remained on track to deliver profits because it would make £60m of cost savings this year. Sales continued to rise in China, the US and the rest of Europe. Total reported sales fell by 2% as Burberry closed 1% of its retail space, including an outlet in Asia. | Burberry said it remained on track to deliver profits because it would make £60m of cost savings this year. Sales continued to rise in China, the US and the rest of Europe. Total reported sales fell by 2% as Burberry closed 1% of its retail space, including an outlet in Asia. |
| Marco Gobbetti, who took over as chief executive in July, said: “We are building on strong foundations and are fully focused on the successful delivery of our multiyear plan to position Burberry firmly in luxury and deliver long-term sustainable value.” | Marco Gobbetti, who took over as chief executive in July, said: “We are building on strong foundations and are fully focused on the successful delivery of our multiyear plan to position Burberry firmly in luxury and deliver long-term sustainable value.” |
| Gobbetti wants to spend about £50m a year reinventing Burberry as a “super-luxury” brand. | Gobbetti wants to spend about £50m a year reinventing Burberry as a “super-luxury” brand. |
| Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. | Follow Guardian Business on Twitter at @BusinessDesk, or sign up to the daily Business Today email here. |
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