Burberry makes good start to new fiscal year

United Kingdom
Published:  20 July, 2021
Credit: Burberry

The luxury British fashion house has seen strong recovery in the first quarter of the 2022 financial year, with comparable store sales now in line with pre-Covid-19 trading despite a continuing challenging environment.

Significant improvement in retail comparable store sales were up 90% from 2021 and 1% from 2020, driven by full-price comparable sales up 121% from 2021 (26% from 2020). In total, reported retail sales grew 86% year-on-year.

Asia Pacific was up 27% compared with 2021 and 7% with 2020, with continued strong growth in Mainland China and South Korea. EMEIA increased 146% year-on-year and was down 38% from 2020, as the business continued to be impacted by weaker tourist footfall and Covid-19 related store closures in Continental Europe in particular. Americas were up 341% compared to 2021 and 34% compared to 2020. Digital continued to see excellent growth with full-price sales more than doubling compared to 2020, with strong growth seen in every region.

Marco Gobbetti, Chief Executive Officer of Burberry said: “We saw strong growth across our strategic categories, in particular leather goods and outerwear, and exited markdowns in digital and mainline stores. Despite the continuing challenging external environment, we are very pleased with the progress against our strategy.”

Outlook
Financial year 2022 guidance remains unchanged except wholesale, which is now expected to increase by approximately 60% year-on-year in H1. The medium-term guidance for high single digit top line growth and meaningful margin improvement remains firmly on track.