// Burberry’s revenues for the first half of the year rise to pre Covid-19 levels
// The retailer is maintaining its medium-term guidance, saying its comfortable with current year market expectations
Burberry has announced its interim results for 26 weeks ended 25 September and said it is maintaining its medium-term guidance for high single-digit top line growth.
The luxury British retailer said it is comfortable with current year market expectations after seeing its revenues for the first half of the year rise to pre Covid-19 levels, driven by strong growth in mainland China, South Korea and the United States.
The fashion giant has shown strong signs of recovery in its interim results with a 37 per cent boost in retail store sales from last year.
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It is now reporting annual revenues of £1.213 billion, with the retailer also reporting an operating profit of £196 million, nearly four times the level achieved a year ago and beating expectations.
Its free cash flow has reached £104 million, having previously been suffering from negative figures post pandemic.
The retailer said that its new store concept helped to drive higher-spending consumer recruitment as it now has 15 stores in the new format with around 50 new concept stores planned globally by end FY22.
Chairman Gerry Murphy said the retailer’s full-price sales were growing at a double-digit percentage.
The business reported that full-price sales almost doubled in the Americas, while South Korea grew almost 80 per cent, and mainland China was up over 40 per cent.
Other regions, such as Europe, remained under pressure from reduced tourist levels, it said.
“We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation,” said Murphy.
“We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals.”