Burberry UK sales drop as wealthy tourists look elsewhere

Burberry said its UK sales fell by a “high single digit percentage” - AP

Burberry’s UK sales dropped in the last three months of last year as a boom in tourists buying luxury goods apparently came to a halt.

The high-end fashion brand said like-for-like sales in its home market fell by a “high single digit percentage” after shoppers from overseas helped it grow 40pc over the same period last year.

That was offset by growth in continental Europe and mainland China that helped it deliver total revenues of £719m, down 2pc on the previous year but up 1pc on an underlying basis. Group like-for-like sales were up 2pc. 

Marco Gobbetti, who replaced Burberry’s long-time creative director Christopher Bailey as chief executive last year, said the company was “making good progress” and was on track to meet its profit target for the year.

He said: “We are building on strong foundations and are fully focussed on the successful delivery of our multi-year plan to position Burberry firmly in luxury and deliver long-term sustainable value."

Mr Gobbetti has been trying to take Burberry further upmarket, with a particular focus on expensive leather goods including handbags and improving in-store service.  

Unveiling the new strategy in November, he said it would help the company “drive sustainable growth and higher margins over time”.

But investors were seemingly unimpressed as Burberry’s shares tanked 10pc on the same day.