Burberry shares drop as sales rise

Published:  12 Jul at 9 AM

Burberry, the fashion group, has announced that a growth of sales in the Asian market has led to a boost in revenues for the last quarter. For the three months ending in June the company said it had increased revenue by 11 per cent to £408 million.

However, Burberry shares have fallen in value by 7.4 per cent because the growth fell short of the previous quarter’s and was less than analysts expected.

Asia currently accounts for more sales than any other region and Burberry said that performance in China was particularly strong. Angela Ahrendts, the company’s chief executive said that brand momentum had once again allowed Burberry to deliver robust figures for the quarter.

She added that retail sales, which account for some 70 per cent of business, had grown by 14 per cent and that wholesale revenue was up nine per cent on a year ago at £102 million.

According to Hargreaves Lansdown analyst, Richard Hunter, Burberry shares have suffered because the company has not been able to deliver on the heavy expectations of investors. The announcement that sales have slowed compared to previous quarters comes as Marks & Spencer announced that poor weather and stock issues had hit its sales.