Burberry’s sales decline 9% in third quarter

Published:  20 January, 2021
Credit: Burberry

Retail comparable store sales for the British fashion brand declined 9% as planned reductions in markdown and reduced tourist traffic in outlets are reported to have offset high single-digit full-price sales growth.

Burberry said that Covid-19 related store closures averaged 7% in the third quarter of the company’s fiscal year 2021, impacting trading. Burberry reported digital full-price sales growth of over 50%, with Mainland China in triple digits. However, comparable store sales declined 9% in the period. Sales in the Asia Pacific grew 11% with strong growth in Mainland China and Korea, but declined 37% in the EMEIA and 8% in the Americas.

“We remain encouraged by the strong underlying outperformance of full-price sales in Q3 FY2021. Notwithstanding further Covid-19 disruption, we expect continued progress on our strategic objectives in Q4 FY2021”, said Burberry, adding that it expected gross margins to benefit from full price, regional, and channel mix changes as well as lower stock provisions