Burberry’s new CEO starts strong with Q1 growth

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Burberry Q1 report

Luxury fashion retailer Burberry has revealed growth in its first quarter as its new chief executive Marco Gobbetti settles into the role.

In the three months to June 30, retail sales jumped three per cent to £478 million while like-for-likes rose by four per cent, both in line with positive predictions.

Growth was largely driven by a strong sales in the UK and China, where shoppers continue to take advantage of the discounted luxury items due to the weakened pound.

The first set of results under Gobbetti will have been watched closely by investors, following hints of a shareholder revolt over pay rewards for the outgoing chief executive Christopher Bailey.

READ MORE: Burberry expected to post growth ahead of AGM

Burberry has also pledged to save £100 million from costs by 2019, an ambitious project that now fall on the shoulders of Gobbetti, who took over the helm on July 5.

The retailer has stated that it is on track to secure £50 million in cost savings by 2018 and that guidance for full year profits was unchanged.

“I am delighted to have started as Burberry CEO. We are pleased with our performance in the first quarter, while mindful of the work still to do,” Gobbetti said.

“This is a time of great change for Burberry and the wider luxury industry.

“I look forward to building on the foundations Christopher (Bailey) and the team have put in place and creating new energy to drive growth.”

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