Burberry‘s strategy of focusing on full-price sales has paid off. As a result, in the six months to 25 September 2021, it saw revenues reach pre-pandemic levels. The “leather” category saw double-digit full-price comparable sales growth, compared to 2019, thanks to the performance, in particular, of women’s handbags.
1.21 billion pounds
Burberry, which recently hired Versace’s number one Jonathan Akeroyd as its new CEO, reported revenues of 1.21 billion pounds in the last fiscal half-year. This is a 45% increase at constant exchange rates over 2020. Operating profit more than doubled (207million pounds). Despite these results (margins exceeded market expectations), stocks had a difficult morning session on the stock exchange on Thursday.
Full-price sales strategy
For the British brand, the best performing markets are: China, South Korea and the United States. Retail sales are up 37% on 2020, and 1% on 2019. In this context, full-price sales were up 18% on 2019, reflecting the brand’s strategic decisions over the past year to stop discounts and reduce promotional sales. The brand, reads a note, confirms its medium-term forecasts and profit guidance for the 2021-22 fiscal year, which ends next March.
- Burberry has a new CEO: Jonathan Akeroyd (currently in Versace)
- The momentum of luxury and how it will grow over the next decade