Burberry: China's stop threatens its profit in 2018
The British company, about to present its annual accounts on Thursday, could reduce their operating profit by a 5%, to 442 million pounds (511,4 million euros), as a result of the trade war between China and the United States.
The economical results of Burberry could be in real danger. The British company, which is presenting its accounts for 2018 this Thursday, could see how its operating profit is reduced by a 5% to 442 million pounds (511,4 million euros), partly due to the uncertainty that China has suffered regarding the price war against the United States, according to The Sunday Times.
As reported by stock analysts, despite the Chinese market represents 40% of Burberry's sales, annual revenues would not be affected as they would remain at 2.720 million pounds (3.147 million euros).
Burberry billed 2.733 million pounds (3.100 million euros) in 2017, 1,2% less than the previous period
In the latest quarterly results (at the closure of December 29), the company reported that its retail sales were valued in 711 million pounds (822 million euros), a 1% less than in the same period of 2017, while it was increased by a 1% in comparable areas.
Currently, Burberry's business is going through a repositioning led by Mauro Gobbetti as CEO, and Ricardo Tisci as creative director. Among their plans. they are set to remodel some key flagship stores for the physical company and withdraw them from non luxury wholesale channels.
The British company closed its 2017 exercise, with a turnover of 2.733 million pounds (3.100 million euros), 1.2% less than the previous year. On the other hand, the group's profit saw a increase of 2%, arriving to 29.6 million pounds (334,1 million euros).
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