The luxurious trend retailer Burberry has reported a rebound in sales to pre-pandemic levels pushed by a increase in younger shoppers, with merchandise together with leather-based items, jackets and footwear proving significantly in style.
Burberry, which operates 454 shops, concessions and franchises globally, stated it had made an “excellent start to the year”, and the recovery had allowed it to cease the low cost worth technique employed in shops and on-line globally throughout the coronavirus disaster to strive to drive sales.
The luxurious trend model reported revenues of £479m within the 13 weeks to 26 June, up 86% on the identical interval final year, and 1% on sales in 2019.
“Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand,” stated Marco Gobbetti, who introduced final month he would stand down as chief govt after nearly 5 years.
“We saw strong growth across our strategic categories, in particular, leather goods and outerwear, and exited markdowns in digital and mainline stores.”
Burberry stated sales of products at full worth had been up 121% in contrast with final year, and up 26% in contrast with 2019. Full-price sales on-line greater than doubled in contrast with pre-pandemic.
Full-price sales of leather-based items and outerwear such as jackets, quilts and downs doubled in contrast with final year, whereas there was triple-digit progress for shoe sales year on year.
Sales levels grew 146% year on year in Europe, the Middle East, India and Africa (EMEIA), 27% in Asia Pacific and 341% within the Americas.
Sales in Asia Pacific have returned to pre-pandemic levels, up 7% in contrast with 2019, pushed by a increase in new shoppers in mainland China, which had been 55% larger than pre-pandemic, and in Korea, the place they rose greater than 90%. The Americas area can be again at pre-pandemic sales levels, up 34%.
However, sales within the EMEIA area stay 38% beneath pre-pandemic levels as the area continues to be hit by low levels of vacationers and retailer closures due to Covid-19, significantly in continental Europe.
On common, 11% of Burberry’s shops had been closed throughout the buying and selling interval, though this diminished to solely 3% by the tip of June as pandemic restrictions proceed to be eased in most markets. However, greater than a 3rd of shops are nonetheless working on diminished hours.
“We have made an excellent start to the new fiscal year,” stated Gobbetti, who’s to develop into chief govt on the luxurious Italian group Salvatore Ferragamo. “Despite the continuing challenging external environment, we are very pleased with the progress against our strategy.”