Thursday trade on main stock exchanges was defined by Burberry, which presented its financial results for the six months ended in March. The British retailer was badly affected by currency exchanges that nothing but added to the concerns about the approaching departure of the CEO.
In London, Burberry posted revenue of 1.3 billion pounds in the six months to March 31, driven by double-digit percentage comparable sales growth in China and Korea and projects that its 20-25 new stores will contribute to single-digit percentage growth in retail revenues during the year.
Nevertheless, the quintessentially British luxury goods group anticipates its profits will fall by about 30 million pounds because of the strengthening currency. The company believes that if the sterling – which has gained 4 percent in comparison to US dollars in the last six months – stays at the same levels, the profits for the ongoing year would get “materially” impacted.
“While current exchange rates are a material headwind in what remains an uncertain macro environment, our continued global brand momentum provides an excellent foundation for the future,” said still CEO at Burberry, Angela Ahrendts.
As raised by many in the City, investors seem concerned about the departure of the CEO, who is widely credited for transforming the fashion and who will leave mid-year to join Apple Inc. as Senior Vice President of Retail and Online Stores.
The stock closed up by 2.1 percent on the London Stock Exchange Wednesday on the upbeat revenue growth recorded in the first half of the year.
Elsewhere, China Xiniya Fashion Limited published its financial statements for the fourth quarter 2013. Revenue during the period decreased 8.6 percent to 486.9 million Renminbi, down from the 532.5 million Renminbi noted a year earlier yet within the prior guidance range of 12 to 8 percent.
Gross margin was 29.4 percent in the fourth quarter of 2013 as compared to 33.3 percent in the fourth quarter of 2012. Net profit in the fourth quarter of 2013 decreased by 11.9 percent to 49 million Renminbi.