Burberry posts sales rise as turnaround strategy pays off
Burberry reached a “meaningful inflection point” in the year to 28 March with a return to profitable comparable sales growth.
Comparable store sales rose by 2% across the group following an increase of 5% in the luxury brand’s fourth quarter.
Subscribe to TRBWhile EMEIA sales were flat across the year due to a continued reduction in tourist activity, sales in the Americas and China both increased by 4% after 10% growth in the fourth quarter.
Meanwhile, full year revenue declined by 2% to £2.4 billion as adjusted operating profit increased to £160 million from £26 million a year earlier.
During the 52 weeks, Burberry improved its in-store experience to drive cross-category merchandising and store productivity. This included the launch of 200 scarf bars which helped drive an outperformance in the category.
Joshua Schulman, Burberry chief executive, said: “This financial year marks a meaningful inflection point for Burberry. We’ve returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas.
“Our strategy is working and there are clear opportunities for further growth. As we look ahead, while mindful of the uncertain macroeconomic environment, our focus is on disciplined execution of Burberry Forward.
“With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation.”
Burberry has also announced that Gerry Murphy, who joined its board in 2018, has decided to retire as chair in November and will be succeeded by William Jackson, the founder and former chief executive and chair of Bridgepoint Group. The appointment followed a search process led by Orna NiChionna, Burberry senior independent director.
NiChionna said: “We are delighted to welcome William to the Board. He brings a broad range of skills and experience to support the next stage of our growth, including senior executive and non-executive leadership roles and a strong track record of leading and scaling businesses across international markets. ” leadership.”
She added: “On behalf of the board, I would like to thank Gerry for his exceptional leadership over the past several years.
“His stewardship during a period of significant disruption and change in the luxury sector has been important in creating a more resilient business with a strong platform for the next chapter of Burberry.”
