London tourism boom boosts Burberry

London tourism boom boosts Burberry

Iconic British fashion brand Burberry has seen UK sales rocket as tourists flocking to London to take advantage of the Brexit-hit pound has sparked a luxury shopping spree.

Burberry saw UK like-for-like sales race more than 30% in the three months to 30 September after the plunging pound saw overseas shoppers rush to London to snap up luxury goods at a better price.

Shoppers from China and the United States in particular have been travelling to the UK to hit the shops, according to the group.

It came as a welcome boost to Burberry and helped the group return to overall sales growth in its second quarter, up 2% against a 3% fall in the previous three months.

It said recent further falls in the pound were also now expected to add around an extra £125m to full-year profits, up from July's estimate of £90m.

Carol Fairweather, chief financial officer of Burberry, said the group was "delighted" with its sales performance in the UK, which accounts for  around 15% of group-wide revenues and some 40% for the European region.

She said sales to Chinese shoppers in UK stores were up more than 20%, but added that the group also saw a recovery in demand from British shoppers over the summer.

Sales of designer bags were strong in particular, she added, especially Burberry's new equestrian-inspired satchel, the Bridle Bag.

Its second-quarter sales hike marks the group's first like-for-like growth for a year.

 

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