Burberry: third-quarter sales growth disappoints

(CercleFinance.com) - British luxury goods group Burberry missed third-quarter growth forecasts on Wednesday, prompting the shares to fall by over 7% in London.


Comparable retail sales grew by a modest 2% in the three months to 31 December 2017, the company said, after rising 4% in the first half of the fiscal year.

The consensus was looking for 4% growth.

Asia Pacific grew by a mid-single digit percentage, while Americas grew by a low single-digit percentage, with US revenue broadly flat, the firm said.

For the record, retail revenue accounts for two-thirds of Burberry's sales.

Burberry - which is in the midst of a transition - said it was on track for the "next phase of its transformation."

"However, there is no update on a new creative director," an analyst pointed out.

Burberry shares, which rose by over 20% in 2017, were down 7.2%, largely underperforming the FTSE 100 index, which is down 0.3%.

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