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Burberry: Q3 sales decline

Burberry: Q3 sales decline

Sales declined again for the British luxury group Burberry, which is still struggling with the closure of boutiques.

 

On Wednesday, Burberry announced a 9% decline in sales for the third quarter of its 2020-2021 fiscal year. In the last three months, the group claims to have suffered a 4% decline in the last three months of 2020, to 688 million pounds. Despite the recovery in Asia, the closure of these stores still weighs heavily on the British company.

 

Following the first wave of coronavirus, the British luxury group reported a 45% drop in sales in the first quarter but was able to recover in June thanks to the rebound in demand in mainland China and South Korea.

 

Burberry reported in a press release that currently 15% of its stores are closed and one-third of its stores operate with reduced hours or restrictions. It speaks of an “uncertain trajectory” for these activities “given the spread of new, more transmissible variants of Covid-19“.

 

“We expect trade to remain vulnerable to regional disruption for the remainder of our fiscal year“, Burberry continued in a statement.

 

The decline reached 9% in-store sales on a like-for-like basis, but the difference is widening by region. The decline reached 37% in Europe, the Middle East, and Africa, while it was limited to 8% in the Americas. For the Asia-Pacific region, the recovery enabled it to post a rebound of 11%.

 

“Despite the difficult environment, we made good progress in our strategic priorities during the quarter”, said Mr. Gobbetti. “Our collections are being well received by a new, younger customer base, as well as by existing customers“.

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Burberry‘s share gained 4.8% on the London Stock Exchange in the morning. The Group’s annual financial results will be published on May 13.

 

Read also > CAC40: MIXED START FOR LUXURY

 

Featured Photo : © Burberry

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