Burberry's Q2 growth stalls after China disruption

Bad weather and travel restrictions in China meant sales at Burberry flatlined in the second quarter.

Thursday's (November 11) update saw shares in the luxury brand fall 10% in early trade.

That's despite profits beating analyst expectations.

Burberry said footfall in China dropped in August, but recovered in September and October.

The country is Burberry's biggest market.

Growth there, and in South Korea and the U.S., drove its revenue to pre-health crisis levels in the first of the financial year.

The company reported revenue of $1.64 billion for the first six months to September - up 45% on a year before.

Adjusted profit beat expectations and came in at around $262 million.

Europe was a weak spot, though. That was blamed on lower tourist levels.

Ted Baker was another British brand that saw higher sales.

It also reported a smaller loss for the first half.

Workers going back to the office saw demand for formal and occasion wear go up.

Group revenues rose nearly 18% year-on-year.

But those same revenues were still down more than a third compared to 2019.

Ted Baker said the health crisis had continued to affect footfall at retail stores.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting