Against an ongoing challenging backdrop, Burberry Group plc reported full-price comparable store sales increase of 26 percent against Q3FY20 and 15 percent against last year. The company said, Q3 full-price sales were up 10 percent but total comparable store sales declined 3 percent versus second quarter of 2020 and increased 7 percent compared to last year.
Space growth contributed 1 percent to retail sales in the quarter, while FX was a 3 percent headwind. In total, reported retail sales grew 5 percent year on year.
Burberry expects current year adjusted operating profit to grow in the region of 35 percent at CER compared with the prior year. The company maintains the medium-term guidance for high single-digit top line growth and meaningful margin accretion at CER.
“Full-price sales continued to grow at a double-digit percentage compared with two years ago, accelerating from the previous quarter and reflecting a higher quality business. Our focus categories outerwear and leather goods performed strongly as we continued to attract new, younger consumers to the brand. Despite the ongoing challenges of the external environment, we are confident of finishing the year strongly and providing an excellent platform on which to build when our new CEO Jonathan Akeroyd joins in April,” said Gerry Murphy, chair of Burberry Group plc in a statement.
Highlights of Burberry’s Q3 performance
The company added that Asia Pacific comparable store sales were flat with full-price comparable store sales materially accelerating from Q2. Mainland China comparable store sales grew 15 percent with full-price comparable store sales up 37 percent versus FY20, an improvement over the prior quarter due to reduced Covid-19 disruption.
South Korea outperformed with comparable store sales up 28 percent with continued strength in full-price comparable store sales, 62 percent ahead of pre pandemic levels. The company further said that Japan and South Asia Pacific improved quarter on quarter as Covid-19 related restrictions eased however performance remains soft due to limited tourist traffic.
EMEIA comparable store sales were down 17 percent vs FY20 and full-price comparable store sales declined by 4 percent. Americas saw continued strong performance in full-price comparable store sales up 72 percent driven by new customers. Comparable store sales grew 8 percent with the region being most impacted in the quarter by the exit of markdown.
In product, full-price outerwear sales grew 38 percent supported by the campaign and new elevated check range in Birch Brown colourway. Leather goods also strengthened over the prior period, with full-price sales up 29 percent. Digital full-price sales increased high double digits vs LLY.