Between a slow start to the year in the Americas and a decline in its Asia-Pacific business, Burberry closed out the first quarter of the year with same-store sales up just 6 percent and total revenue coming in at £407 million (roughly $635 million), up 8 percent from last year. Although the company noted in an earnings statement released Wednesday that the first quarter, which ended June 30, is typically the weakest, it wasn't such a good showing compared to years past. In 2013 and 2012, comparable sales increased 13 and 12 percent, respectively.
While sales in the Americas recovered to show high single-digit growth, Hong Kong was yet again a sore spot for Burberry, as it has been for a lot of luxury brands. Purchases in the region dropped in the double digits percentage-wise. Helpfully, Europe, the Middle East and Africa's combined results went the exact opposite way, growing in the double digits.
We've talked a lot about Burberry's ponchos in the past few quarters, after the monogrammed version Bailey sent down the runway resulted in a flurry of sales late last fall. The company is now calling ponchos "an emerging key category," so we'd expect to see it really building out its styles in the coming seasons.