Luxury Burberry sales have 5% Q2 revenue decline

Burberry, a British luxury goods group, released its report on Wednesday. Burberry's revenue for the three months ended September 30 reached 343 million pounds, which was a 5% decline in fixed currency terms. According to Burberry, the decline in overall revenue in the second quarter was smaller than expected, indicating an improvement in sales trends in the second half of the year.

Luxury companies were hit hard during the recession, but Burberry, famous for its red-and-black lattice, reacted quickly: cutting costs, laying off staff, and selling shares. Its share price has fallen by 70% last year, and this year it almost completely regained its ground. Compared with the increase of DJ Stoxx's personal and household goods index, its performance has almost doubled.

The overall retail sales of Burberry increased by 16 percentage points, of which same-store sales increased by 5%. Among them, the double-digit growth in the European and Asian markets made up for the decline in sales in the United States and Spain. In addition, its wholesale revenue decreased by 21%, and franchise revenue decreased by 9%.

Burberry operates 122 retail outlets, 255 franchise stores, 90 franchise stores, and conducts electronic commerce business in 25 countries. Burberry said that it expects to add about 15 mainstream stores throughout the year.

Burberry estimates that wholesale revenue will fall by an overall 15% in the second half of the year, and will increase its annual franchise revenue expectations, from a previously forecasted decline of 10 to 15 percentage points to a decline of 5 to 10 percentage points.