Angela Ahrendts, Chief Executive Officer, commented:
“Against record prior year comparatives, Burberry delivered 8% total revenue growth and 10% retail growth in the first half, albeit slowing in the second quarter. In a more challenging external environment, footfall declined but brand momentum remained strong, particularly with our higher spending luxury consumer.
Our highly experienced team remains very focused on the consistent execution of our key strategies, engaging consumers through innovative retail and digital marketing initiatives as we enter the most important quarter of the year. We continue to invest for long term growth in flagship and emerging markets, while tightly controlling discretionary spend.”
Following its profit warning in September shares plummeted down 20%.
These figures are set to confirm the spending slowdown in China, and the general view that the 3 year luxury goods boom has come to a momentary hold as a result of this slowdown and the Euro-land crisis. Although we would also suggest this is a physiological slowdown which was inevitable after Burberry’s incredible gains over the past few years.