// Burberry sales decline 10% in the year to March 27
// Trading was impacted by store closures during the Covid-19 pandemic
// Burberry also attributed the drop to a decline in international tourism
Burberry has seen its sales drop by 10 per cent in the year to March 27 after trading was impacted by store closures during the Covid-19 pandemic.
For the 52 weeks to March 27, adjusted operating profit fell 8.5 per cent to £396 million, compared to £433 million in the previous year.
Burberry also attributed the drop to a rapid decline in international tourism.
The company said there was a recovery later in the year with fourth quarter comparable store sales increasing by 32 per cent year-on-year, despite an average 16 per cent of Burberry stores being closed.
Full-price sales climbed by 63 per cent in the quarter due to strong sales in mainland China, Korea and the US.
“In the last three years we have transformed our business and built a new Burberry, anchored firmly in luxury,” Burberry chief executive Marco Gobbetti said.
“We have revitalised our brand image, renewed our product offer and elevated our customer experience while making further progress on our ambitious social and environmental agenda.
“In spite of Covid-19, we achieved our objectives for the period and delivered a strong set of results in FY21, ending the year with good full-price sales growth.
“In this next chapter, supported by these foundations and the strength of our teams, we will accelerate our growth and deliver value creation while continuing to build a more inclusive and sustainable future.”
Burberry said it will accelerate growth by continuing to build brand advocacy and community, focusing on its core luxury categories, rolling out its new store concept and scaling new omnichannel experiences.
It will also continue to focus on full-price sales while significantly reducing markdowns.