LONDON — Burberry Group's retail sales in the key third quarter fell short of the company's expectations, remaining flat at reported rates and increasing one percent on an underlying basis.Sales in the October to December period were 603 million pounds, or $917 million, in what chief creative and chief executive officer Christopher Bailey said was "a tougher environment than expected" for the luxury sector as a whole.The company saw Mainland China and Korea both return to growth in the three months.Burberry said the one percent underlying growth in the quarter came from new space, with comparable sales unchanged year-on-year.By comparison, in the first half Burberry's retail sales grew 3.5 percent on a reported basis, and 2 percent on an underlying one.Looking ahead, Burberry said it expects adjusted profit before tax for the full year ending March 31 to be broadly in line with market forecasts, and supported by a further reduction in management bonuses, additional discretionary cost savings, and a boost from foreign exchange rates.In the 2016-17 fiscal year, the company said the outlook for demand in luxury remains uncertain, adding that "underlying cost pressures persist" for the sector.Burberry cited a return to growth in Mainland China, although problems in Hong Kong and Macau continue to weigh on sales, and Asia-Pacific overall saw a midsingle-digit percentage decline in comparable sales.Burberry said that excluding Hong Kong and Macau, comparable sales grew by a midsingle-digit percentage, with growth also resuming in Korea.Comparable sales in Hong Kong declined again by more than 20 percent, driven by a further significant decline in footfall, although stores remain profitable, Burberry said.Bailey said the outlook for the luxury sector as a whole remains uncertain as the consumer and environment evolve. "However, we are anticipating and responding to these changes through an intense focus on new growth opportunities and the acceleration of our productivity and efficiency agenda," it noted.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion