For the first half of its fiscal year 2021, Burberry posted a 31% decline in revenue, with adjusted operating profit down 75% and adjusted diluted EPS down 88% (reported diluted EPS down 66%). The company said recovery is underway with sequential improvement in comparable store sales to -6% in the second quarter, from -45% in in the previous first quarter and returning to growth in October. According to Burberry, Mainland China, Korea and the U.S. saw “strong double-digit growth” in the second quarter, while the EMEIA, Japan and South Asia Pacific “remain impacted by the significant reduction in tourism”.

Burberry said there has been a strong response to product with marked increase in the weight of full-price channels, year-on-year, and growth in leather goods category is outperforming the average comparable retail same-store sales. The company has reported an “excellent growth” in the digital channel, up by “high double digits”.

“We are encouraged by the recovery in Q2 FY2021 but remain conscious of the uncertain macro-economic environment caused by Covid-19″, said Burberry. “We currently have more than 10% of our stores closed globally following the recent lockdowns in EMEIA. With the brand resonating and attracting new and younger consumers, we have taken the decision to reduce markdowns and this will be a revenue headwind in H2 FY2021 with the main impact in Q3 FY2021 but will serve the long-term interest of the brand. We are well positioned to continue to drive performance and deliver growth in the medium term”.