Burberry’s sinking star
Also Asia’s growth – particularly in China – is causing problems, because the decreasing sales originate broad based geographically. However, Asia is at present the most important and fastest growing region with a share of 37 % of total revenues at the end of March and at that time sales were up 43 %.
Also other fashion retailers are suffering but it is Burburry reporting weakening results as first comer. In the last two years average sales growth amounted to 16 % annually because of the changed strategy to sell more high-end goods through a larger network of own stores. It has to be stated that investors are worried and they think that Burburry cannot withstand better these downward trends than some of its competitors.