Burberry’s tighter inventory control cut underlying wholesale revenue by 14 percent in the six months ended Sept. 30, as the luxury British brand worked to elevate its positioning, particularly in the U.S., by pushing less product into department stores in an effort to keep it out of their off-price channels. That decline, combined with a 54 percent decrease in licensing, more than offset a 2 percent increase in its retail division, pushing total revenue down 4 percent to 1.16 billion pounds ($1.42 billion).
Looking ahead to the second half of its fiscal year, Burberry expects total wholesale revenue at constant exchange rates to be down by a mid-teens percentage from a year earlier, with trends similar to those in the first six months. The company projects pre-tax profits for the full year around 450 million pounds ($550.1 million).
French retailer Carrefour posted a 1.1% increase in sales in the three months ended Sept. 30, reaching 21.8 billion euros ($23.8 billion). Excluding gas sales and calendar and currency effects, like-for-like sales rose 3.2%. A “persistently difficult environment” in France caused sales there to fall 0.9% to 10.17 billion euros ($11.12 billion), despite like-for-like sales increasing 1.2%. Latin America was yet again the standout market, posting a 14.2% jump in like-for-like revenue, thanks to a double-digit increase in both Brazil and Argentina. Asia, however, experienced a 5 percent decline in like-for-likes.