Burberry recovers as revenues return to pre-covid levels

Burberry has reported operating profits of £196m, an increase of nearly four times the figure of the same time last year for the 26 week period ending 25 September.

The luxury retailer said it is “comfortable” with current year market expectations after seeing its revenues for the first half of the year rise to pre Covid-19 levels, with revenue currently sitting at £1.21bn – driven by strong growth in mainland China, South Korea and the United States.

The brand also posted that its store sales increased 37%, with full-price performance “driving” gross margin and adjusted operating margin increases.

Burberry also said its new store concept is driving higher-spending customer recruitment, with the brand now having 15 stores in the new format with around 50 new concept stores planned globally by the end of 2022.

Gerry Murphy, chair of Burberry, said: “We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation. We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals.
“I would like to thank Marco Gobbetti for his vision and leadership of Burberry’s transformation. We are very excited that Jonathan Akeroyd is joining as our new CEO in April to build on the strong foundations to accelerate growth and deliver further value for our shareholders.”