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 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.

Source: Arabian Business

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