Burberry has reported a 10 per cent sales drop in its preliminary results for the 52 weeks ended 27th March and an 8.5 per cent fall in operating profit from £433 million to £396 million. It attributed the drop in sales to store closures, a lack of tourism due to the Covid-19 pandemic and the UK’s exit from the EU.
The luxury retailer reported a recovery in Q4 FY21 with comparable store sales increasing 32 per cent year on year and -5 per cent compared with Q4 FY19 despite an average 16 per cent of stores being closed. Within this, full-price sales grew 63 per cent in the quarter driven by Mainland China, Korea and the U.S.
CEO Marco Gobbetti said,” 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.”
On the impact of Brexit, Marco Gobbetti said “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.”
“In this next chapter, supported by these foundations and the strength of our teams, we will accelerate our growth and deliver value creation while continuing to build a more inclusive and sustainable future.”
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