LONDON – Burberry is again in progress mode, with similar retailer gross sales surging 32 p.c within the fourth quarter of fiscal 2021, following a 9 p.c decline within the earlier interval because of lockdown-related closures, and a clampdown on seasonal discounting.
That fourth-quarter bounce helped to raise Burberry’s full-year efficiency, with the corporate posting an 11 p.c decline in income to 2.34 billion kilos, with similar retailer gross sales down 9 p.c for the 12-month interval that was scarred by retailer closures worldwide, lowered tourism and uncertainty throughout all of Burberry’s main markets.
Working revenue greater than doubled to 521 million kilos within the 12 months ending March 27, with revenue for the interval greater than tripling to 376 million kilos because of tight price and stock administration and elevated full-price gross sales.
Burberry has reinstated its dividend to 2019 ranges, paying 42.5 pence, in contrast with 11.3 pence final 12 months.
Burberry shares had been down 8 p.c to 19.37 kilos at 8:40 a.m. British Summer time Time.
Burberry’s chief government officer Marco Gobbetti stated Burberry is now ready to construct on that progress, and stake its declare as a luxurious participant.
“Within the final three years we now have remodeled our enterprise and constructed a brand new Burberry, anchored firmly in luxurious,” stated Gobbetti.
“We’ve revitalized our model picture, renewed our product supply and elevated our buyer expertise whereas making additional progress on our bold social and environmental agenda. Despite COVID-19, we achieved our aims for the interval and delivered a powerful set of ends in full-year 2021, ending the 12 months with good full-price gross sales progress.”
He stated that, wanting forward, and “supported by these foundations and the energy of our groups,” the plan is to speed up progress and ship worth creation “whereas persevering with to construct a extra inclusive and sustainable future.”
The corporate stated that restoration accelerated via the 12 months with fourth-quarter comparable retailer gross sales down 5 p.c in contrast with the corresponding interval in 2019, a 12 months earlier than the pandemic struck the U.Ok., and regardless of a median 16 p.c of shops being closed within the three month interval.
The corporate stated that full-price gross sales grew 63 p.c within the fourth quarter – almost double the speed of similar retailer gross sales progress in the identical interval – and 12 p.c versus This fall 2019, pushed by Mainland China, Korea and the U.S.
The corporate stated that 2021 general progress was pushed by “wonderful response to product, with progress in our strategic classes and in promoting costs, growing model energy attracting new and youthful clients, and native buyer traction, due to modern promoting codecs throughout lockdowns.”
Looking forward to fiscal 2022, Burberry stated it expects income to develop by “a excessive single digit share” underpinned by the continued outperformance of full-price gross sales.
“We’ll proceed to strengthen model fairness by exiting markdowns in mainline shops” in fiscal 2022,” the corporate stated, including that it’s targeted on, and continues to spend money on, sustainability and social objectives.
It should develop into carbon impartial by 2022, and plans to proceed championing range and inclusion, impacting a million individuals within the communities wherein it operates.