(Alliance News) - Burberry Group PLC on Friday reported a strong start to its financial year, with sales now slightly ahead of pre-Covid levels in a sign that luxury retail has re-emerged from the pandemic.
In the 13 weeks to June 26, Burberry's retail revenue jumped 86% year-on-year to GBP479 million from GBP257 million. At constant currency, the leap was 98%.
Comparable store sales were 90% higher than they were a year earlier, and up 1% from two years prior, before the onset of the pandemic. Burberry's first quarter lapped an easier annual comparative, a time when the virus had begun to take a firm grip on the luxury retail market.
Full-price sales also surged in the recent quarter, meaning Burberry has not needed to increase promotional activity to flog stock. Full-price comparable store sales more than doubled yearly and rose 26% from pre-virus levels. Compared to the same period two years earlier, digital full price sales more than doubled, the company noted.
"We have made an excellent start to the new fiscal year. Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand. We saw strong growth across our strategic categories, in particular leather goods and outerwear, and exited markdowns in digital and mainline stores. We continued to roll out our new store concept that will transform how customers experience our brand and product in a uniquely British luxury setting," outgoing Chief Executive Officer Marco Gobbetti said.
"Despite the continuing challenging external environment, we are very pleased with the progress against our strategy. With the company firmly set on a path of growth and acceleration, we are confident of achieving our medium-term goals."
Burberry left its annual guidance largely unchanged but did add it now expects 60% growth from its wholesale unit. This was put down to a "stronger order book".
Gobbetti will step down from the company at the end of 2021, joining Italian fashion firm Salvatore Ferragamo Spa.
Gobbetti was appointed as CEO of Burberry in 2016 and, alongside Chief Creative Officer Riccardo Tisci, was tasked with turning the business around after investors lost confidence in previous CEO Christopher Bailey. Gobbetti took over from Bailey in November 2017.
Meanwhile, peer Compagnie Financiere Richemont SA on Friday said its sales more than doubled in the first quarter ended June 30.
The Bellevue, Switzerland-based luxury goods company reported group sales of EUR4.39 billion, up from EUR1.99 billion a year prior.
"Versus the prior year period, which was severely affected by the pandemic, all regions, channels and business areas saw sales progress at triple-digit rates, with the exception of Asia Pacific, Online Distributors and online retail where sales grew by double digits," the Cartier and IWC Schaffhausen owner said.
Burberry shares were marginally higher at 2,070.96 pence early Friday in London.
By Eric Cunha; ericcunha@alliancenews.com
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