Burberry’s retail sales, which strip out wholesale and licensing revenues, are up 6% for the quarter, a slowdown from the 14% growth in Q1. And earnings for the year are looking decidedly dowdy: Burberry has confirmed that its underlying pre-tax profit for the year to March 31 2013 will be at the lower end of market expectations. According to recent forecasts, analysts were expecting between £407m and £455m.
After the unscheduled trading update, shares in Burberry fell 17.8% to £11.31 in early morning trading. And it’s not just Burberry feeling the pinch in the luxury sector. LVMH was also down 4.1% today at €126.85 and PPR’s shares have dropped 3.67% to hit €123.20.
But as sales of luxury goods start to wane, a more mainstream brand is waxing once more. SuperGroup has just reported strong revenues for the 13 weeks to July 29, with total sales up 20% and like-for-likes at 1.7%.
This is a turn up for the books – especially after all the trouble the SuperGroup bean counters have had managing theirs. Last we heard, annual profits were down 15% and heads were rolling in the company’s wholesale division. But CEO Julian Dunkerton reckons that the business is back on track, saved by an unlikely champion: the British weather. Persistant rainfall has driven up sales of Superdry jackets, gilets, and sweatshirts, while aggressive discounting has shifted old stock.
Another winner in today’s retail round-up is none other than MT 35 Under 35 speaker Anya Hindmarch. The queen of handbags has reported a 16% jump in revenue to £23.2m at her eponymous brand, and is planning a big push into the Middle East this year.
Ahrendts will not be please that Hindmarch’s high-end bags are selling while Burberry accessories are not. Handbags at dawn to settle the score, ladies?