Burberry sales suffer due to covid-19 disruption
Burberry saw its revenues fall by 3% to £2.6 billion in the year to 28 March after the coronavirus pandemic hit sales.
Like-for-like sales were down 27% in the company’s fourth quarter by the end of which 60% of Burberry stores were closed.
Meanwhile, pre-tax profit for the year declined by 62% to £169 million.
Marco Gobbetti, Burberry chief executive, said: “Prior to covid-19, we were delivering strong momentum across our brand and product, with sales ahead of our expectations. Since then, the global health emergency has had a profound impact on the world, our industry and Burberry but I am very proud of the way we have responded. We have taken swift action to mitigate the financial impact on our business, while prioritising the safety and wellbeing of our teams and customers.”
The company said trading prior to the covid-19 outbreak was better than expected with sales up 4% in the first nine months of the financial year.
Speaking of more current trading, Burberry said sales in mainland China and Korea are already ahead of the previous year and are continuing to improve. However, the company expects its first quarter sales to be “severely impacted” by the pandemic due to 50% of its store network currently being closed.
Gobbetti added: “It will take time to heal but we are encouraged by our strong rebound in some parts of Asia and are well prepared to navigate through this period. Now, more than ever, our strategy to secure our position in luxury fashion is key.”
