// Burberry delivers revenue growth but forecasts sales growth will decelerate
// The luxury fashion retailer is maintaining its guidance of high single-digit revenue growth
Burberry has posted a rise in full-year profit but warned that its outlook for future trading is dependent on the rate of recovery in China, where Covid has led to more lockdowns.
For the 53 weeks ended April 2, 2022, the luxury fashion retailer reported record revenues of £2.8billion along with pre-tax profits of £511million
Like-for-like store sales grew 18%, with underlying performance driven by full-price sales partially offset by the exit of markdowns in mainline and digital stores.
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The luxury industry has been grappling with lockdowns in China, weak tourism and declines in stock markets that may lead some luxury shoppers to cut back on spending.
The company closed its stores in Russia in March after the outbreak of war in Ukraine and said restrictions in China started weighing on sales in March.
Burberry continental Europe locations saw a decline and the UK remained challenged with London performance weak given its high tourist exposure.
“Burberry is a unique British company with an extraordinary history and heritage and it is a privilege to take the reins in this next phase,” said Burberry CEO Jonathan Akeroyd.
“The company has made great progress over the last five years to elevate the brand, product and customer experience into the luxury space. I look forward to setting out my plans for building on these strong foundations and accelerating growth at the interim results in November,”
In 2022, the retailer opened 38 stores and closed 35 stores.
Key openings included three new flagship stores: Sloane Street in London, Rue Saint Honoré in Paris and Plaza 66 in Shanghai.
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