Store sales recovering at fashion house Burberry

Burberry, which has released its preliminary results for 52 weeks ended 27 March 2021, says its recovery has accelerated through the year.

The fashion brand, which has a base near Keighley and a factory in Castleford, says its quarter four FY21 comparable store sales increased 32% year on year and and were down just 5% compared to quarter four FY19 despite an average of 16% of stores being closed.

For the full year revenue decreased 10% to £2.3bn (2020: £2.6bn) impacted by store closures and reduced tourism, but with a strong recovery in the second half.

Over the same period pre-tax profits dropped to £490m from £169m in 2020.

The listed company reported increasing brand strength, which it says is attracting both new and younger customers to its products.

And Burberry adds it is continuing to adapt to the EU-UK Trade and Cooperation Agreement to ensure Brexit causes minimal disruption to its operations and customers.

Commenting on the UK’s exit from the EU, the business states: “We have initiated a number of actions to mitigate duty costs including collating evidence in support of claiming preferential duty rates, streamlining product flows to minimise movements of goods between the UK and EU, and establishing a customs warehouse.”

Marco Gobbetti, chief executive officer, said: “In the last three years we have transformed our business and built a new Burberry, anchored firmly in luxury.

“We have revitalised our brand image, renewed our product offer and elevated our customer experience while making further progress on our ambitious social and environmental agenda.

“In spite of COVID-19, we achieved our objectives for the period and delivered a strong set of results in FY21, ending the year with good full-price sales growth.”

Source: Store sales recovering at fashion house Burberry | TheBusinessDesk.com