Burberry Returns to Pre-Pandemic Growth Levels, Notching 86% Rise in Q1 Revenue

LONDON – First-quarter retail revenue at Burberry surged 86 percent in the fourth quarter to 479 million pounds, fueled by continued strong growth in Mainland China, Korea and the Americas. The company said Friday that at constant exchange, retail revenue rose 98 percent in the three months to June 26.

Comparable-store sales rose 90 percent compared with the first quarter of last year, and climbed 1 percent compared with pre-pandemic levels two years ago. Burberry, which has been on a mission to eliminate discounting and shrink its sales periods, said that full-price comparable store sales jumped 121 percent compared with last year, and 26 percent compared to pre-pandemic levels.

“We have made an excellent start to the new fiscal year. Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand,” said CEO Marco Gobbetti, who announced his resignation earlier this month, and who will to take up a similar post at Salvatore Ferragamo in Italy.

“We saw strong growth across our strategic categories, in particular leather goods and outerwear, and exited markdowns in digital and mainline stores. We continued to roll out our new store concept that will transform how customers experience our brand and product in a uniquely British luxury setting.”

He added that despite the “continuing challenging external environment, we are very pleased with the progress against our strategy.” He said the company is “firmly set on a path of growth and acceleration, we are confident of achieving our medium-term goals”

Burberry pointed out that customers, especially young ones, were buying at full-price rather than waiting for sales.

In the Americas region, the company said it saw full-price comparable store sales more than double, while Mainland China increased more than 55 percent and Korea more than 90 percent compared with two years ago. “This was driven by new, local, young customers buying across our core categories.”

Burberry has also been opening more stores as lockdown restrictions have lifted around the world. The company said that by the end of June, 3 percent of its stores were closed, with 35 percent still operating on reduced hours. It added that business in Europe and much of Asia is still heavily impacted by “the significant decline of international tourist traffic,” due to travel restrictions.

Source: Read Full Article