Burberry sales figures see slump in 2012
Luxury market affected in general
The luxury products sector, including cosmetics interests, fell sharply on European stock markets on 11 July in the wake of concern over the difficult economic environment and especially concern over the economic downturn in the hitherto booming Asian region.
The trigger is understood to have been the fall in Burberry's quarterly sales figures which was greater than expected – being affected by the climate in the Eurozone and the contraction in the emerging markets. Sales fell by 11% in the quarter ending 30 June after increasing by 15% in the previous quarter.
Burberry shares dropped 5.1% in London while on the Paris Bourse the sharpest falls on the CAC 40 index included LVMH and PPR, both groups with key cosmetics interests. Many of these companies are due to report their half year sales later this month.
Burberry however has said its sales figures were robust given the more difficult economic environment and added that its discussion with the French Inter Parfums group over the creation of a joint enterprise in the cosmetics and perfumes sector were continuing.