1. News
January 20, 2022

Burberry reports rise in third-quarter store sales for FY22

The company expects its current-year adjusted operating profit to grow by 35% compared with a year earlier.

British luxury fashion house Burberry has reported that its revenue and full-price comparable store sales increased in the third quarter (Q3) of the fiscal year 2022 (FY22), which ended on 25 December.

During the three-month period, the company’s full-price comparable store sales grew by 26% compared with the same period of last year and 10% from the previous quarter.

The sales increase was driven by strong growth in leather goods sales, which rose by 29% year-on-year.

Despite this, Burberry’s comparable store sales dropped by 3% from a year earlier as the company continued to reduce its markdown.

Driven by robust performance in the Americas and material improvement in the Asia-Pacific and Europe, Middle East, India and Africa (EMEIA) regions, the retailer’s retail revenue reached £723m ($986m).

Burberry expects its full-year adjusted operating profit to grow by around 35% compared to the previous year.

The company also anticipates its currency headwind to be £79m on revenue and £27m on adjusted operating profit.

Burberry chair Gerry Murphy said: “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.”

Burberry launched a new store concept during the quarter and said it is on track to open around 50 concept stores by the end of the fiscal year.

Last March, the company partnered with ELLE Digital Japan to develop an interactive virtual store modelled after Burberry’s Ginza store in Tokyo.

The virtual space consists of three floors on which customers could buy items from Burberry’s current spring and summer collection.