LONDON (ShareCast) - (Sharecast News) - Burberry posted a rise in third-quarter sales on Wednesday and lifted its revenue guidance for the year but shares of the luxury fashion brand fell as it said sales in Hong Kong were dented by unrest.
In the 13 weeks to 28 December, retail revenue grew 2% to £719m, with comparable store sales up 3%. As a result, it now expects FY2020 total revenue to grow by a low single digit percentage at constant exchange rates, compared to previous guidance of broadly stable.

Chief executive officer Marco Gobbetti said: "This was another good quarter as new collections delivered strong growth and we continued to shift consumer perceptions of our brand and align the network to our new creative vision.

"While mindful of the uncertain macro-economic environment, we remain confident in our strategy and the outlook for FY 2020."

Sales in Asia Pacific rose by a low single digit percentage, driven by mainland China- where they rose by mid-teens. However, Hong Kong sales halved amid continued disruption in the region, which has been hit by pro-democracy protests. Growth in the Americas was stable; the US grew by a low single digit percentage but this was partially offset by Canada.

Europe, the Middle East, India and Africa saw sales rise by a high single digit percentage supported by tourist spend, which particularly benefited Continental Europe, Burberry said.

At 1050 GMT, the shares were down 1.8% at 2,221.50p, in the red but off earlier lows.

Russ Mould, investment director at AJ Bell, said: "It is hard to square the market reaction with today's trading update.

"Revenue upgrades and a solid quarterly sales performance would typically see a company be rewarded rather than greeted with raspberries by the market.

"The strong run the shares have enjoyed in recent months may have prompted some profit taking and the reminder of how closely the company's fortunes are tied to China may have provoked some nervousness given the deadly virus which is currently afflicting the country. The political disruption in Hong Kong is also having an impact too."

Email this article to a friend

or share it with one of these popular networks:

• DIGG
• FACEBOOK
• STUMBLEUPON
• MIXX
• YAHOO BUZZ
• DELICIOUS
• REDDIT
• NEWSVINE