Burberry sales in stores have been picking up considerably. In other words, they have moved from -45%, in the period running from April to June, up to -6% in the last business quarter, closed on September 26th. Financial analysts had predicted a 12% downturn in comparable sales. Such rewarding results have been driven by leather goods.
Good performance in China (in Asia sales increased by 10% in the quarter) and for online sales (which enjoyed a “high double-digits” boost). “We feel encouraged by our overall recovery and we rejoice after observing a remarkable response to our brand and our products, especially among new and younger customers”, commented Chief Executive Officer Marco Gobbetti.
The half year
At the end of the first six months of the financial year (running from March to September), Burberry earnings amounted to 878 million pounds, therefore decreasing by 31% compared to the previous year. As regards adjusted operating profits, they dropped by 75% as they reached 51 million pounds in the end. Marco Gobbetti claimed that the brand “quickly adapted itself” during the pandemic, making progress about its own strategic goals.
Yet, despite that, the fashion brand has been still prudent about the outlook for the whole year. On the one hand, they pointed out, they feel “encouraged” by recovery enjoyed in the second quarter of the year; yet, on the other hand, they are fully “aware of the uncertain macroeconomic scenario”.
Thanks to leather goods
Leather goods have been playing a prominent role in the last quarter. Burberry emphasized the excellent performance achieved by their Pocket bag product line (in the picture, taken from burberry.com) in China, “which enjoyed a growth in double figures”, as highlighted in the brand’s press release.
“Lola, TB, Pocket and Title models now account for over 60% of women’s bag sales”. The British fashion brand announced they have reduced promotional sales as their new products turned out to be quite appealing: they are going to pursue such strategy in the future as well.