Burberry, a fashion store founded in London, pushed for a large increase in revenues in the quarter to 30th June, but reports confirm that they have missed their targets.
Revenues have increased from £367m in the same quarter last year to £408m, a total rise of 11 per cent. This figure falls flat against the expected rise to £416m, or an increase of 13 per cent.
Burberry opened six large stores in the quarter, aimed mainly at tourists and prosperous inhabitants. Alongside well performing menswear and non-clothing collections and an increase in average selling price, this has prompted retail sales to rise by 14 per cent, from £245m to £280m.
Burberry’s current strategy is to focus on large cities, with a “25 Londons” policy. This has brought double digit growth from China, and high growth in the UK, France and Germany. However, Italy and Korea have shown significantly lower growth, and there have been 5 per cent losses in Japan through reductions in licencing revenue for franchised branding.
Burberry’s shares fell in response to the news, and were down 5.4 per cent following early trading.