2021 started with a sprint for Burberry. Retail sales took off thanks to China and South Korea. This performance allows the British brand, which will close its fiscal year on March 27th, to go beyond the forecasts. After Ferragamo and Prada, Burberry also is also feeling the push from Asia.
A sprint start
Burberry communicated during an unplanned occasion on March 12th, that comparable retail sales made during the last fiscal quarter of the year (January – March), should be between 28% and 32% higher than the same period of the previous year. “Since December, we have continued to see a strong rebound – says the official note -, and now expect revenue and adjusted operating profit to be ahead of consensus expectations”. Burberry expects the year’s revenue to drop between 10% and 11%, with ratified operating margins between 15.5% and 16.5%. Analysts expected, on average, that revenue would decrease by 13% at constant rates, for the current financial year, according to a statement made by the company in January.
Thanks to Asia
The improvements mostly happened in Asian stores, specifically China and South Korea. Such better performances will, in part, compensate the downward trend of Europe’s sales, where the recovery is still slowed by restrictions. Burberry’s statements made investors very happy: the brand’s stock price increased to pre-pandemic levels.
Image taken from burberry.com