Burberry receives holiday bump thanks to American shoppers

 

(Reuters) -British luxury brand Burberry (LON:BRBY) announced a less than expected 4% dip in quarterly comparable store sales on Friday, buoyed by improved holiday season demand in the United States, an optimistic milestone in the company's revival.


CEO Joshua Schulman, who took over at the troubled business six months ago, said Burberry's seasonal advertising efforts, which featured its characteristic trench coats and scarves more than bags and shoes, resonated with a broad variety of customers.

Schulman's goal is to place the focus on Burberry's best-known items to win back clients he said were repelled by less identifiable styles and greater pricing.

"While we recognise we are still early in our transformation, we are encouraged by the response from customers and partners over the festive period," the company said in a statement.

Third-quarter sales in the Americas grew 4% and Burberry said New York, where the company inaugurated a restored store on 57th Street, performed strongly. Asia Pacific continues to trail, with sales down 9% and mainland China down 7%.

Analysts had predicted a 12% fall in comparable sales for the company's third quarter to end-December.

After reporting an adjusted operating loss of 41 million pounds ($51 million) in the first half of the year, Burberry said it was now more likely to turn a profit over the course of the fiscal year.

$1 is equal to 0.8074 pounds.