The British trenchcoat maker Burberry Group reported estimate-beating revenue as Asia Pacific returned to growth, the second positive sign in a week for Europe’s struggling luxury-goods industry.
Third-quarter retail revenue rose 4 per cent on a currency-neutral basis, the London-based company said Wednesday, compared with the median analyst estimate for a 3 per cent gain. Bags were particularly strong after Burberry introduced products such as the Bridle model, which sells for up to £16,000 (Dh72,262).
The results will bolster optimism that the luxury business may have bottomed out after Cartier owner Richemont reported a return to growth last week. Burberry said its Asia Pacific division had a sales gain in the low single digits, marking a rebound for its largest unit which has been struggling for growth against a backdrop of weaker demand.
Highlights of the quarter included a record number of views of the company’s Christmas ad and strong demand for new products, said the chief executive Christopher Bailey. Mr Bailey is due to hand over the reins to Marco Gobbetti in July and will return to steering Burberry’s creative direction as part of a management re-shuffle that also includes a new finance chief, Julie Brown, who started on the job Wednesday.
* Bloomberg
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