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Burberry revenue misses growth estimates

Burberry’s growth in revenue has failed to meet the estimates of analysts.

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. 

Helen Robb reads PPE at Oxford University where she is deputy editor of ISIS magazine.