Sales at Burberry rose 4% in the three months to 31 December 2016, fuelled by a return to growth in China, strong UK sales and a well-received festive campaign.
The Tale of Thomas Burberry Campaign on embargo until 1 November 2016 8AM UK time
The positive result compares with a 4% fall in sales on an underlying basis to £1.2bn for the six months to 30 September 2016, when reported profit before tax was down 34% year on year to £102m.
Retail revenue for the third quarter of 2016 was £735m, and like-for-like sales were up 3%. Sales in the UK rose by 40%, thanks to both UK demand and tourist spend. Digital sales also showed growth across all regions, after Burberry redesigned its global site,and introduced an enhanced local website in China.
The Asia-Pacific region experienced low single-digit growth in comparable sales, with particular acceleration in mainland China, where sales returned to growth.
However, sales in Europe were described as “weak”, and sales in the Americas showed a low single-digit percentage decline.
The brand highlighted its festive advert as helping to drive sales, and the Burberry Christmas ad was viewed more than 20 million times.
Commenting on the results, Christopher Bailey, chief creative and chief executive officer of Burberry, said: “With a record number of views of our festive film and strong demand for new products in our collections, this third-quarter improvement reflects early progress from our plans to drive Burberry’s performance for the long term. We continue to take action to position the business for growth over time and our plans to enhance efficiency are on track.”