By Helen Reid and Yadarisa Shabong
(Reuters) -British luxury brand Burberry (LON:BRBY) reported a smaller than expected 4% drop in quarterly comparable store sales on Friday, helped by stronger holiday season demand in the United States, an encouraging step in the company’s turnaround.
CEO Joshua Schulman, who took over at the struggling brand six months ago, said Burberry’s festive advertising campaigns, which highlighted its trademark trench coats and scarves more than bags and shoes, resonated with a broad range of customers.
Schulman’s strategy is to put the focus on Burberry’s best-known products to win back customers he said were alienated by less recognisable designs and higher prices.
“While we recognise we are still early in our transformation, we are encouraged by the response from customers and partners over the festive period,” the company said in a statement.
Third-quarter sales in the Americas rose 4% and Burberry said New York, where the brand opened a refurbished store on 57th Street, performed well. Asia Pacific continued to lag, with sales down 9% and mainland China down 7%.
Analysts had expected a 12% decline in comparable sales for the company’s third quarter to end-December.
Burberry said it was now more likely that it would make a profit over its financial year, expecting to offset the adjusted operating loss of 41 million pounds ($51 million) it reported in the first half.
($1 = 0.8074 pounds)
