Hongkong'S Sluggish Market, Burberry, Is Also At A Loss What To Do. Stock Prices Plummeted In The Worst Performance In 6 Years.

Burberry group released the latest report that Hongkong's performance still fell, but the mainland's consumer confidence was weak. Affected by negative earnings news, the company's share price plunged 12.2% in the early trading of the day, to 12.46 pounds ($19.12) per share, the biggest decline in three years.

In the first half of this year, group retail sales increased by 3.5% to 774 million pounds (1 billion 190 million US dollars), and analysts said the result was "disappointing". According to Citibank's Thomas Chauvet, according to the level of the financial crisis, the performance from July to September is the most negative since the third quarter of 2009, which is the worst performance in the past 6 years.

Excluding the impact of exchange rate, group retail sales increased by 2%. On the basis of the report, 0.5% of the total revenue, including wholesale and licensing operations, amounted to 1 billion 110 million pounds (about 1 billion 700 million US dollars). Women's wear Turnover was flat compared with the same period last year, while accessories sales increased by 2%.

Compared with Burberry's 8% revenue growth in the first three months of this fiscal year, a 2% increase indicates a marked slowdown in earnings growth in the second quarter. Although analysts' expectations have been lowered, Burberry's performance is still lower than expected.

Christopher Bailey, chief executive officer and chief creative officer of Burberry, said the external environment has become more challenging in the second half of the year and has had an important impact on consumer demand in some key markets. He pointed out that the company has already made strategies to focus on promoting sales and productivity and quickly taking measures to supplement free funds.

Bailey also said the company expects to harvest a more positive sales in the second half of the year. trend 。 We will maintain our attention and confidence in the long term business growth of all channels, regional and all product categories. The company said it would further strengthen its online and offline product service innovation and redistribute the market budget during the holiday season. At the same time, accelerate the cost control of all businesses.

The Asia Pacific region is a high profit market with a large number of Burberry stores, but its performance in the quarter is the worst. On the basis of the report, the turnover has dropped by 2%; on the basis of excluding the exchange rate, the turnover has dropped by 6%; on the basis of the report, the turnover in Europe, the Middle East and Africa has increased by 1%; on the basis of excluding the exchange rate effect, the turnover has increased by 8%; on the basis of the report, the turnover in the Americas region has increased by 6%; on the basis of excluding the exchange rate effect, the turnover is flat.

In terms of classification, women's clothing sales were flat, accessories increased by 2%, men's clothing sales were flat, but they fell by 1% on the basis of excluding exchange rates. On the basis of the report, the turnover of children's clothing increased by 10%; on the basis of excluding the exchange rate, it increased by 8%; and the sales of cosmetics and cosmetics increased by 4%.

Burberry has been frustrated by the long social turbulence in Hongkong and the slowing down of China's economy. At the same time, the weakness of the euro led to the spread of the "gray market" trade. The intermediate chamber of Commerce went to Europe to buy luxury goods at low prices and returned to China for the two sale. In addition, the Chinese government's continued suppression of vanity consumption is also a result. Luxury brand An important reason for the decline in performance. It is clear that the luxury giants have no way out for the downturn in the mainland and Hongkong markets. According to LVMH's latest earnings report, Louis Weedon's third quarter turnover declined and the Chinese market continued to deteriorate.