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World

Sterling flatters Burberry results

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World

Sterling flatters Burberry results

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COMING UP:Sterling flatters Burberry results

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00:00:01
>> The weak pound luring luxury shoppers to London and giving fashion label Burberry a Brexit boost. Sales in its home market jumping 30% in the first half, but that failed to offset weak international wholesale demand. According to Reuters's UK Senior Correspondent Paul Sandle.>> Today the pound is slightly strong against the dollar which does Burberry no favors.
00:00:24
But also investors are worried about those wholesale revenues which are down in the first half. And the company is also fairly pessimistic about the outlook about those wholesale revenues particularly to US department stores. So that is really having an impact on the shares today, and sent them down quite sharply.
00:00:44
>> The stock, one of the 30 best performance since the vote to leave the EU, down as much as 9% on Tuesday. That's it's biggest one-day fall for four years, but the trench coat maker says it is on track to deliver full year targets. And designer Christopher Bailey will soon be freed of his CEO duties.
00:01:03
>> But for next year, he will focus entirely on the creative side of the business. A new CEO will come in. And investors are looking for improvements in it's store performance, it's operations, so a new chief effective will hopefully function the business and get it operating at the kind of level of some of it's peers.
00:01:24
>> In September Burberry debuted its first ever direct to consumer cat walk collection. A massive supply chain, and an industry shift that should play well with young shoppers. The company is also slimming down. A new finance chief has been drafted in to implement an ambitious 100 million pound cost cutting plan.
00:01:43
But there are still some big steps to take before investors see results.