For the first half of the year, Burberry’s profit increased by 11 per cent. After remodeling its commercial network, sales of Burberry’s directly operated stores rose by six per cent during the period. The revenue of the licenses, on the other hand, also experienced an increase of six per cent while the revenues of the channel multibrand had a flat evolution. While sales in Hong Kong fell by double-digits, sales rose six per cent in the rest of Asia Pacific. In Europe, the group’s sales increased six per cent while in America the increase was two percent. Burberry delivered financial results in line with guidance despite the decline in Hong Kong. Luxury sales overall in Hong Kong have been down by as much as 60 per cent in the quarter to September. The problems in Hong Kong have led some companies to start negotiating with landlords in order to try to get reductions on the territory’s traditionally sky-high rents.
Burberry is undergoing a major transformation. The British luxury company is rationalizing its distribution and refreshing its retail stores in all major cities. The company has seen a successful launch of its new go-to-market model. The brand’s strategic focus is on igniting brand heat.