Strong UK sales at Burberry fail to cheer investors
A Brexit bounce in UK sales was not enough to lift the gloom at Burberry as the luxury brand battles a global slump in demand for designer clothes and handbags.
The British company said a 30% surge in domestic sales helped counteract weaker performances in important overseas markets such Best Prada Outlet In Florence as Hong Kong and a steep fall in orders from department store buyers, particularly in the US. The trench-coat maker said its full-year profits would also receive a 125m boost from the devaluation of sterling as about 80% of its sales are overseas.
Burberry chief financial officer Carol Fairweather said the drop in the value of the pound had been so significant that tourists coming to the UK were splashing out, with Authentic Prada Outlet Online Usa its new satchel-style Bridle bag, the cheapest version of which starts at 1,200, among its current bestsellers.
The Chinese Authentic Prada Handbags Canada are very much part of that, but all tourists are up in this quarter, the US as well, she said. [They are] clearly influenced by foreign exchange rates movements but they are also really responding to everything they are seeing in the stores.
The update did not cheer investors, with Burberry shares ending the day as the biggest faller in the FTSE 100, down more than 7%. The stock was knocked by the decision by Bank of America Merrill Lynch, one of the companys house brokers, to cut its rating from buy to neutral, noting that companys share price had enjoyed a strong Agatha Ruiz Dela Prada run after hitting a 14-month high on Friday.
Despite headline-grabbing initiatives such as making the clothes in last months London fashion week show instantly available online, dreamt up by its chief executive, Christopher Bailey, Burberry is grappling with an industry-wide slowdown.
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