Burberry sales knocked by lockdowns, but fashion firm eyes post-pandemic growth
Burberry’s campaign features footballer Marcus Rashford
(Burberry)Burberryhas revealed how lockdown store closures have knocked sales, but the luxury fashion firm said it is set for post-pandemic growth.
The FTSE 100 firm, whose campaign features footballer Marcus Rashford, had to temporarily close shops at different points last year. Travel restrictions have also hit tourist spend.
It said comparable store sales fell 9% in the 13 weeks to December 26.
Other headwinds ahead include a “modest increase” in border trade compliance costs following the Brexit trade deal that was struck, and the impact from the government’s move to end tax free shopping for international visitors.
But Burberry pointed to a number of positive signs in the third quarter, including a strong performance in Mainland China, and Korea, high online demand, and latest collections being received well.
Chief executive Marco Gobbetti added that while the short-term outlook remains uncertain , the firm is “well placed to accelerate when the pandemic eases”.
The shares gained 90p to 1828p.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, said: "Underlying performance is strong, despite the dip in sales caused by the pandemic. Crucially, Burberry is steaming ahead with its planned reduction in markdowns. This won’t only help margins in the long run, but is an integral part of elevating the brand."
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