Burberry turns to Mideast as sales in West slow

UK luxury fashion brand Burberry Group said on Tuesday it was boosting its presence in the Middle East in an effort to offset slowing sales in the West




Burberry said it had entered into a joint venture with the Dubai-based Jashanmal Group that would manage all its retail and wholesale distribution within the UAE, Qatar, Oman and Kuwait under a 15-year agreement.

Burberry said the joint venture, Burberry Middle East, would allow it “to capitalise more quickly on opportunities in parts of the Middle East while increasing investment”.

Year-to-date comparable store sales in the UAE, Qatar, Oman and Kuwait rose by more than 40 percent, the company said.

Burberry on Monday reported a 13 percent rise in first-half profit. Net income increased to 74.8 million pounds ($94.3 million) from 66.1 million pounds for the same period last year.

Burberry chief financial officer Stacey Cartwright said in October a build-up of stocks of unsold goods could weigh on revenue.

Burberry’s shares closed down 6.1 percent to 200.25 pence in London at close on Monday. The stock has fallen 64.84 percent year-to-date.

The first Burberry store in the Middle East opened in Dubai in 1997 under a franchise agreement with Jashanmal.

Burberry said there were currently eight stores in the region, with a further four planned for the current financial year.