Burberry’s fourth-quarter sales meet forecasts as Iran war curbs tourism, offsetting gains from its heritage-focused turnaround.
LONDON: Burberry reported fourth-quarter sales in line with expectations on Thursday, as the Iran war dampened tourism and buying activity, offsetting gains from the British luxury brand’s heritage-focused turnaround.
A hit to global travel and rising living costs linked to the Middle East war have disrupted early signs of recovery in the $400 billion luxury market, squeezing profits and deepening a downturn that followed the post-pandemic boom.
Burberry, seen among the least exposed luxury companies, reported comparable retail sales growth of 5% in the three-month period ended March 28, bringing annual growth to 2%, in line with analysts’ expectations in a company-compiled poll.
However, sales in Europe, the Middle East, India and Africa fell 2% in the fourth quarter, while other regions recorded strong growth.
Burberry also said that Chair Gerry Murphy will be retiring later in the year, and will be succeeded by William Jackson.
