Burberry has finally met sales expectations following a tourist boost from the recent Brexit referendum. The British trench coat maker revealed that revenue rose 5 percent to US$1.42 billion in half a year through September, meeting analysts’ initial expectations of about US$1.44 billion. Retail sales in the second quarter reportedly climbed on a comparable basis to about 2 percent.
As the sterling fell to its all-time low in decades following the historic withdrawal of Britain from the European Union, tourists have been flocking to the UK to take advantage of the increasing purchasing value.
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Rival LVMH has also reported a similar boost in revenue. Just last week, the luxury group revealed that sales have exceeded estimates thanks to the rising demand for fragrances and leather goods. Other competitors, however, reportedly suffered a less than desirable outlook from slower demand from Asia amongst other factors.
According to Burberry, comparable sales rose 30 percent in the UK, thanks to “improved performance from the traveling luxury customer in the second quarter” within the region. The sales boost appears to provide a silver lining of sorts – the London-based Burberry recently appointed Marco Gobbetti as chief executive officer after Christopher Bailey’s two-year stint coincided with a fall in profits.
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