Burberry gives up plan to build factory in Leeds

Dhaka,  Thu,  24 August 2017
Published : 13 Jul 2017, 16:35:18

Burberry gives up plan to build factory in Leeds

Burberry has given up the site of a proposed £50m factory in the heart of the government’s mooted “northern powerhouse” a year after it delayed the decision because of Brexit uncertainty, according to a global media report Thursday.

The facility, due to open by 2019 in a former flax mill in Leeds, would have created 200 jobs. But the luxury trenchcoat maker said Wednesday it had relinquished its option on the building.

Burberry still owned land adjacent to the site and could open UK factories in future and that Brexit was not the only factor behind the change of course. 

Burberry reported 3.0 per cent revenue growth in its first quarter after adjusting for the weaker pound, buoyed by increased spending by Chinese consumers and a steady performance in the UK.

Same-store sales grew 4.0 per cent, double the rate expected by analysts, helped by a popular range of leather goods that notched up mid-teens percentage growth. 

Shares in Burberry rose 2.9 per cent after the news to £16.25. But in the Americas, revenue suffered a “low single-digit percentage decline”, as US consumers took advantage of the strong dollar to do more of their shopping while overseas.

Burberry suggested that not enough people were visiting its stores, saying that “mainline footfall remained challenging” - although the company was managing to convert a higher proportion of browsers into paying customers.

- SZ

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