Friday, January 21, 2022

Burberry’s UK market surges 40% from weak pound

Burberry has posted a three per cent rise in comparable retail sales in its third quarter, boosted by an “exceptional” UK market where comparable sales grew by 40 per cent.

The luxury British fashion retailer also said its retail sales increased by four per cent on an underlying basis to £735 million in the three months to December 31. 

The exceptional growth in the UK was attributed to tourists from all regions and from domestic customers taking advantage of the weaker pound or capitalising on purchases before inflation increases prices.

In addition, Burberry said its festive campaign – in which engagement doubled to over 22 million film views – coupled with new products in all categories helped boost sales.

READ MORE: Burberry confirms dates and timeline of leadership changes

Digital also outperformed with growth in all of Burberry‘s markets, with mobile purchase4s leading the way in terms of traffic and conversion.

“With a record number of views of our festive film and strong demand for new products in our collections, this third quarter improvement reflects early progress from our plans to drive Burberry’s performance for the long term,” chief executive Christopher Bailey said.

“We continue to take action to position the business for growth over time and our plans to enhance efficiency are on track.”

However, Burberry‘s performance in continental Europe remained weak – although France saw an improvement compared to the last quarter – while in the Americas, there was a low single-digit percentage decline.

Meanwhile, the brand experienced acceleration of growth in mainland China, with high single-digit percentage comparable sales growth, and Hong Kong improved with a low single-digit percentage comparable sales decline.

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