Burberry Venture To Tap Middle Eastern Promise

Retail Week:

Luxury retailer Burberry is putting its faith in emerging markets as trade generally continues to be “volatile”.

This week Burberry revealed a joint venture in the Middle East with long-standing franchisee Jashanmal Group. The partnership, Burberry Middle East, will take advantage of the growth potential of the region, where like-for-like store sales have risen more than 40 per cent in the year to date.

Burberry Middle East will manage all Burberry’s retail and distribution in the region under a 15-year agreement.

Burberry chief financial officer Stacey Cartwright said that trade across the group is “very volatile right now”. Conditions have been particularly tough in the US.

In the six months to September 30, Burberry’s pre-tax profits increased 1 per cent to £97 million and group revenues rose 20 per cent to £593 million.

Since September retail sales have been ahead of last year, but down by a “mid-single digit percentage” like-for-like.

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