Q1 comparable store sales down 21% (Il Sole 24 Ore Radiocor) - London, 15 Jul - The UK luxury fashion group Burberry said that in the first quarter, or the 13 weeks ended June 29, retail sales fell a reported 22% and a constant currency 20% to 458 million pounds as the luxury market is proving more challenging than expected with the weakness highlighted entering the fiscal year deepening.

Comparable store sales fell 21% compared with the 18% increase in the same period a year ago, with all regions with the exception of Japan posting a contraction.

In Asia Pacific, comparable store sales fell 23%, with Mainland China down 21%, South Asia Pacific 38% lower, South Korea down 26% while Japan up 6%, benefitting from strong tourism spend mainly from Chinese and near shore customers in Asia, whilst locals remained soft.

The Americas saw a 23% drop in comparable store sales, driven by declining locals. Globally, the Americas customer group performed broadly in line with the region. The EMEIA zone fell 16% with local spend deteriorating versus last quarter.

Tourists accounted for just over half of retail revenues but declined by a high single digit percentage.

"The slowdown in trading we experienced in Q1 FY25 continued into July. If this trend were to continue through the current quarter, we would expect to report a H1 FY25 operating loss and FY25 operating profit to be below current consensus," the company said.

"As we navigate this period, we have decided to suspend dividend payments in respect of FY25 in order to maintain a strong balance sheet and our capacity to invest in Burberry's long term growth.".

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(RADIOCOR) 15-07-24 08:35:36 (0125) 5 NNNN