Business USA

Burberry affected by the slowdown in sales in the United States

Burberry, which manufactures waterproof and leather for 156 years, announced an increase of 22% of its sales in the third quarter, an increase in line with market expectations.

Some analysts note, however, that orders from wholesalers have taken the lead and that the overall objective for 2011 is now up and only a small increase in sales to wholesalers in the fourth quarter.

“The numbers are generally correct, but the poor performance in the U.S. and the weakness of the goal for the fourth quarter could worry the market,” commented analysts at Liberum in a research note.

By 1200 GMT, the action Burberry lost 2.62% to 1,266 pence, while the London Stock Exchange advanced 0.46%.

The values ​​of luxury faltered in recent months in a slowing of Chinese growth engine – the recent surge in demand in the sector – and the fear that the crisis of the euro does a global recession.

The action Burberry, whose price was multiplied by 10 between November 2008 and July 2011, is trading well below its peak of 1,610 pence, while being well above its low point last October 1034 pence.

Burberry has published a turnover of 574 million pounds (691 million) over the last three months of 2011, while analysts polled by Reuters had expected 569 million pounds.

Its chief financial officer Stacey Cartwright said the slower growth compared to 29% in the first half was due to comparatively high, while demand from Asian customers including tourists remained strong.

Sales in Asia-Pacific region jumped 39% to 210 million pounds, while a strong demand from travelers in cities like London, Paris and Hong Kong from sales.

Sales growth in the Americas, by contrast, slowed to 4% against 20% in the first half, while in southern Europe, demand is affected by the crisis.

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