Burberry announces dip in revenues for latest quarter

Burberry

British luxury brand Burberry has announced a dip in sales for 13 weeks to 26 December 2020, as retail revenue dropped 4% to £688m, compared to the same period in 2019 (£719m).

Comparable store sales declined 9% as planned reductions in markdown and reduced tourist traffic in outlets offset high single-digit full-price sales growth. COVID-19 related store closures reportedly averaged 7% in Q3.

Despite reduced operating hours and the closure of up to 62 stores at the height of Q3 lockdowns (15% of the store network), Burberry achieved a high single-digit full-price sales increase in the quarter.

Burberry saw digital full-price sales grow over 50% in the quarter, with Mainland China in triple digits. Digital remained a key driver of growth for the business, with digital innovations such as pop-ups and local activations supporting the sales figures.

Marco Gobbetti, Chief Executive Officer of Burberry commented: “Despite the challenging external environment, we made good progress on our strategic priorities in the quarter. We saw a strong increase in full-price sales as our collections and communication resonated well with new, younger clientele as well as existing customers.

Our localised plans and digital capabilities helped drive growth in rebounding markets and we implemented our planned reduction in markdown. While the short-term outlook remains uncertain due to COVID-19, we are well placed to accelerate when the pandemic eases.”