Burberry shares drop after weak U.S. sales

STORY: Burberry was back in fashion with Chinese buyers over the fourth quarter.

That helped the luxury brand make stronger-than-expected sales over the period.

China made up just under a third of all sales for Burberry in the quarter as health crisis restrictions ended.

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Europe also performed strongly, with sales there up 27%.

That was driven largely by tourists from the Middle East and Americas.

But shares in the company still fell over 6% on Thursday (May 18).

Investors were worried over weak demand in the Americas, where sales were down 7%.

Burberry said the region was a 'challenge at the moment'.

It blamed weaker spending by younger consumers, which had hurt its lower-priced categories.

The British brand's shares had hit record highs in recent months due to optimism over China's recovery.

Burberry's luxury rivals Hermes and LVMH have also reported a bounce in first quarter sales.

As with Burberry, that was due to a recovery in China and wider Asian markets.

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