Burberry (LON:BRBY) has warned on the impact of a no-deal Brexit on the company, as the deadline for the UK’s departure from the EU draws closer.
“The biggest concern is the disruption to the supply chain,” chief operating and financial officer Julie Brown told reporters.
“Burberry imports and exports significant volumes of raw materials, samples and finished goods between the UK and the EU, and it is the logistical delays that would impact design, product development and customer fulfilment.”
Ms Brown’s comments follow Burberry’s third quarter update. The firm reported a 1% rise in sales across the Christmas period, boosted by strong demand in China.
This proved behind analyst expectations of 2%, as a slowdown in US markets weighed down growth.
Burberry is most well-renowned for its infamous check pattern and iconic trench coats.
The luxury British brand is in the midst of an extensive turnaround initiative however, after years of weakened sales.
As part of the brand regeneration, long standing Creative Director Christopher Bailey left Burberry back in 2017.
In a widely celebrated move, Bailey was replaced by former Givenchy designer Ricardo Tisci.
Whilst Tisci’s debut Burberry collection was well received by the fashion set, Burberry are yet to harvest the results of his creative vision, with the collection set to hit stores in late February.
Nevertheless, Burberry said it remained pleased with the ‘brand heat’ generated from through its Christmas campaigns, Vivienne Westwood collaboration and B-Series product drops.
Marco Gobbetti, Chief Executive Officer commented on the third quarter:
“I am pleased with our progress in the quarter as we continued to build brand heat around our new creative vision and shift consumer perception of Burberry. Excitement is growing ahead of next month’s launch of Riccardo’s debut collection. We will continue to manage the business dynamically as we reposition the brand. We confirm our outlook for the full year.”
Shares in the company are currently trading +1.52% as of 12:32AM (GMT).