4% Revenue Growth and Store Transformations
- 4% increase in retail revenue to £498m
- Like-for-like sales up by 4%
- EMEIA growth: low-single digit percentage
- Tourist spend boosted UK sales
- 23 stores incorporated new creative vision
- 9 of 38 non-strategic stores closed
- CEO Marco Gobbetti: ‘on track with plans and confirming FY 2020 outlook’
Fashion retailer Burberry has reported a 4% increase in retail revenue to £498m for the 13 weeks ending 29 June, driven by an ‘excellent’ consumer response to newly designed products from designer Riccardo Tisci. Like-for-like sales also jumped 4%, and the retailer’s EMEIA grew by a ‘low-single digit percentage’ supported by tourist spend, which it said particularly benefited the UK. Additionally, 23 stores incorporated its new ‘creative vision’ by the end of the quarter and a cumulative nine of the 38 smaller, non-strategic stores previously announced for rationalisation have now been closed. CEO Marco Gobbetti said: ‘This was a good quarter in our multi-year journey to transform Burberry. We increased the availability of products designed by Riccardo, while continuing to shift consumer perceptions of our brand and align our network to our new creative vision. “The consumer response was very promising, delivering strong growth in our new collections. We are on track with our plans and we confirm our outlook for FY 2020.’
Factuality Level: 10
Factuality Justification: The article provides accurate information about Burberry’s financial performance, the impact of new designs by Riccardo Tisci, and the company’s plans for store rationalization. It also includes a quote from CEO Marco Gobbetti that supports the claims made in the article.
Noise Level: 7
Noise Justification: While the article provides some relevant information about Burberry’s financial performance and the impact of its new designer, it is mostly focused on reporting numbers and company statements without delving into any deeper analysis or context. It lacks actionable insights or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Burberry’s stock price and luxury goods sector
Financial Rating Justification: The article discusses Burberry’s financial performance, including an increase in retail revenue and like-for-like sales, which can impact the company’s stock price and the luxury goods sector as a whole.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the text
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