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.
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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.”