Burberry hails ‘strong’ full-year results despite sales and profits fall

Burberry reported a 9% decline in adjusted operating profit to £396m in the year to March 27, while overall revenue declined 11% to £2.3bn year on year, down 9% on a like-for-like basis.

Although across the financial year revenue was down, the luxury retailer’s sales momentum recovered in its fourth quarter, with like-for-like sales up 32% year on year and down just 5% on 2019 levels despite 16% of its stores still being closed due to various global lockdowns.

The retailer’s full-price sales also surged 63% during the fourth quarter, driven by strong demand in mainland China, Korea and the US. 

Across the year as a whole, full-price like-for-like sales rose 7% year on year, which Burberry attributed to its increased appeal to younger shoppers and “innovative selling formats during lockdown”, which drove engagement from local customers.

In the second half of the financial year, Burberry’s sales rose 8% year on year.

Chief executive Marco Gobbetti 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.

“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.”

Burberry said it expected revenue in its current financial year to “grow at a high single-digit percentage” driven by full-price sales growth.

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