Sales of luxury Burberry change Q2 revenue decline 5%

Burberry, the British luxury goods group, reported on Wednesday that its revenue as of September 30 reached 343 million pounds in three months, or 5% in fixed currencies. Burberry said the second quarter, the overall decline in earnings fell less than expected, indicating an improvement in sales trends in the second half. Luxury goods companies were hit hard during the recession, but Burberry, best known for its red and black plaques, quickly responded by cutting costs, laying off jobs and selling stocks. Its share price plunged 70% last year, and almost completely lost ground this year, almost doubling its performance over the DJ Stoxx Personal and Household Goods Index. Overall, Burberry retail revenue increased by 16%, of which same-store sales growth of 5%, of which more than double-digit growth in Europe and Asia make up for the United States and Spain market sales decline. In addition, its wholesale income decreased by 21% as a whole, and franchise revenue decreased by 9%. Burberry operates 122 retail outlets, 255 franchise stores, 90 franchisees and e-commerce businesses in 25 countries. Burberry said it expects to open about 15 major stores throughout the year. Burberry expects wholesale earnings in the second half of the year to decline by 15% as a whole and raise the expectation of full-year sales of franchise revenue to 5 to 10 percentage points from the previously forecast decline of 10 to 15 percentage points.