Burberry sees growth accelerate in Q3, but Asia hit by Hong Kong slowdown

14th Jan 2015 07:22

Burberry said it delivered a "strong" performance in its third quarter with reported growth rates accelerating, but highlighted a slowdown in the high-margin market of Hong Kong. The high-end luxury fashion group said retail revenues totalled £604m in the three months to 31 December, up 15% on last year on an underlying basis, with the rate of growth unchanged from the first half.However, retail sales growth at reported currency rates picked up to 14% from 8% in the first half due to an improvement in foreign exchange.Double-digit growth was registered in the Americas, Europe, Middle East, India and Africa.The company said the relaunch of heritage rainwear and cashmere scarves was behind the growth, as well as an "exceptional performance" in runway-inspired ponchos.However, revenues in Asia only grew in the "low" single digits, representing a sharp slowdown from the first half due to "disruption" in Hong Kong where comparable sales fell slightly. However, this was partly offset by a robust performance in mainland China and Korea."We're pleased to report a strong performance over this important period, during which our teams worked tirelessly to bring the very best of the brand to the customer in our stores and online," said chief creative and executive officer Christopher Bailey."Looking ahead, we will bring equal focus to maximising the opportunities of the final quarter - including Lunar New Year - while being mindful of what remains a challenging external environment."