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Burberry is bright as the first quarter shows a strong rebound

Burberry reported on Friday’s first-quarter trading updates, reporting a “great start” for the fiscal year, showing that it “attracted new, young luxury clients to the brand.”


“We have seen strong growth across our strategic categories, especially leather and outerwear, and have finished price cuts in our digital and mainline stores,” he said.

Looking at the numbers, retail sales for the quarter to late June increased from £ 257m a year ago to £ 479m.

Same-store sales have “significantly recovered”, up 90% compared to a year ago and up 1% in a two-year comparison (2YoY). In addition, list-price sales accelerated to + 26% year-on-year. Both Regular priced leather and outerwear more than doubled compared to the first quarter of last year, and shoes grew by three digits.

Digital list price sales have more than doubled year-on-year.

Importantly, since the end of the first quarter, we have opened the first flagship store on Sloane Street in London with a new global design concept. He describes this as “a new customer experience in a luxurious environment unique to Britain,” and states that there will be three more flagship stores next year.

This year’s guidance has not changed except for one plus point and one minus one. On the positive side, wholesale is “expected to increase by about 60% year-on-year in the first half due to the increase in orders.”

And negative? Based on the June 25 spot rate, the 2010 exchange problem is expected to be a headwind of £ 114m in sales and £ 40m in adjusted operating profit.

However, the company’s “mid-term guidance for top-line growth in the high single digits and meaningful improvement in profit margins is on track.”

Looking at the latest quarter in more detail, Burberry said it had strong traction across the market, with comparable store sales more than doubling in the Americas. On a two-year basis, mainland China increased by more than 55% and South Korea by more than 90%.

Despite continued turmoil in some markets, it enjoyed the impressive numbers mentioned above, resulting in an average of 11% of stores closing during the period. By the end of June, only 3% of stores were closed, but 35% are still saving time and operating, and many in Europe and Asia are “significantly affected by the significant decline in international tourists.” I am. “

However, the last few months have been very active and have launched a dedicated handbag campaign centered on Olympia, a new form of handbag.That Kendall JennerThe FKA Twigs and Shygirl campaigns have generated excellent response from both the media and consumers, especially across social media. On social media, consumer engagement with campaign posts increased by double digits compared to pocket campaigns, and news feed post reach and engagement increased by + 96%.58% vs. each [the] Instagram Pocket Campaign “.

In June, we announced the Men’s SS22 Show and the collection “Universal Passport”. The show celebrated youthful aggressiveness and the discovery of a new unknown space through a presentation at the Millennium Mills in Royal Victoria Dock, East London. Again, it resonated very well with both the press and consumers, recording double-digit growth in consumer reach compared to the AW21 Men’s Presentation.

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Burberry is bright as the first quarter shows a strong rebound

Source link Burberry is bright as the first quarter shows a strong rebound

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