Burberry ups FY guidance as full-price sales drive revenues

Fashion retailer Burberry on Wednesday lifted annual profits guidance after reporting a 5% rise in third quarter revenues driven by an acceleration in full price sales of leather and outerwear goods.

The company said revenue for the 13 weeks to December 25 came in at £723m compared with £688m.

It forecast current year adjusted operating profit to grow by around 35% at constant exchange rates and maintained medium-term guidance for high single-digit top line growth and “meaningful margin accretion”. Analysts had expected a rise of 19% to £472m.

Full-price comparable store sales were 26% higher than the same period two in 2019 before the Covid pandemic struck, with comparable store sales down 3% due to its planned reduction in markdowns.

“We continued to strengthen our position with new, younger consumers, with new customers driving double-digit full-price sales growth across all product categories,” the company said in a trading statement.

“Regionally, full-price comparable store sales were driven by continued strong performance in the Americas, a material sequential improvement in Asia Pacific as Covid-19 restrictions eased and improving trends in Europe, Middle East, India and Africa despite an ongoing lack of tourism.”