Burberry Warns on Current Exchange Rate Impacts for Industry
Major economies of China and Hong Kong in Asia produced particularly strong sales. The company has also experienced double-digit sales growth in American and Asian Pacific markets with Middle Eastern and African witnessing just the single digit sales growth.
Burberry however hasn’t been led into a false sense of security. Current exchange rates could mean that retail and wholesale profit could be cut by £55m. The movement in sterling-yen exchange rate is expected to see licensing revenue to decrease by £10m also having a further detrimental effect on favourable profits that were announced as Richard Hunter at Hargreaves Lansdowne Stockbrokers stated about profits, “Less positively, the previous flagged currency headwinds are likely to prove a material drag on full year profits.”