Burberry share price dips as retailer posts drop in revenue

Shares in Burberry (LON:BRBY) have fallen into the red in London this morning as the blue-chip retailer’s revenue fell in the third quarter. The company, however, maintained its full-year guidance as it continues with its transformation under chief executive Marco Gobbetti.

As of 08:48 GMT, Burberry’s share price had given up 1.66 percent to 1,746.50p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.65 percent lower at 6,856.23 points. The group’s shares have added a little over seven percent to their value over the past year, as compared with more than an 11-percent drop in the Footsie.

Burberry posts third-quarter update

Burberry announced in a statement this morning that its retail revenue had fallen two percent at constant exchange rates to £711 million in the third quarter of its financial year. The group’s comparable store sales meanwhile inched one percent higher during the reported period. Reuters reports that the number was just shy of market forecasts of two-percent growth.

The luxury goods retailer revealed that its Asia Pacific region had benefited from Mainland China, which was up mid-single digits, while the EMEIA region showed a small improvement in tourist spending quarter on quarter. Its Americas business, however, was impacted by softer footfall trends.

Burberry maintained its full-year guidance at constant exchange rates, including delivery of cumulative cost savings of £100 million.

Group’s transformation continues

“I am pleased with our progress in the quarter as we continued to build brand heat around our new creative vision and shift consumer perception of Burberry,” the retailer’s chief executive Marco Gobbetti said in the statement. The comments come as the company prepares to release the debut collection of its new chief creative Riccardo Tisci in stores next month.

“Excitement is growing ahead of next month’s launch of Riccardo’s debut collection,” Gobbetti pointed out. “We will continue to manage the business dynamically as we reposition the brand.”

As of 09:15 GMT, Wednesday, 23 January, Burberry Group plc share price is 1,746.50p.