British fashion house Burberry will not renew its watch licensing deal with Fossil Group when it expires at the end of 2017.
The fashion business posted growth of just 1% at the end of 2015 and is now seeking to ‘focus on core luxury categories’ in what it describes as a ‘challenging environment for luxury’.
Commenting on Burberry’s Q3 2015 trading performance Christopher Bailey, chief creative and chief executive officer, said: “In a tougher environment than expected, our sustained focus on growth and cost control drove a number of positive results over the quarter, including the outperformance of digital and a return to growth in mainland China. While Burberry was impacted by the ongoing challenges facing the luxury sector, headwinds in Hong Kong and Macau masked an otherwise stronger performance in many markets.
“The outlook for our sector remains uncertain as the consumer and environment evolve. However, we are anticipating and responding to these changes through an intense focus on new growth opportunities and the acceleration of our productivity and efficiency agenda.”
Burberry announced its intentions to enter the then booming luxury watch sector in 2012, working to develop high end watches, often in precious metals. The brand quickly made its presence felt with a vast, two-storey stand at Baselworld 2013, where it announced The Britain, a watch designed by Bailey himself.
Burberry did not exhibit at Baselworld 2016. WatchPro has approached both Fossil Group and Burberry for comment.