British fashion house Burberry's sales bounce back as lockdown eases

13 Nov '21

2 min read

Pic: Burberry

Burberry Group, a British luxury fashion house, has posted a 38 per cent revenue growth to £1.2 billion in the first half (H1) of FY22 ended on September 25, 2021, compared to the revenue of £878 million in the same period of previous fiscal. Reported operating profit for the six-month period improved 2.4 times to £207 million (H1 FY21: £88 Million).

“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. We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals,” Gerry Murphy, chair at Burberry, said in a press release.

According to the company, its outerwear category saw improving momentum in the half with Q2 full-price sales increasing by 12 per cent. Leather also reported a strong Q1 with the Olympia campaign, with total full-price sales in the half up double-digits.

Furthermore, menswear performed well in the first half with full-price sales up 14 per cent due to good traction in jersey wear and trousers, with shoes an especially strong performer. However. womenswear was more challenging with full-price sales up modestly although it saw a good performance in trousers and knitwear, but challenges in rainwear, Burberry mentioned.

Gross profit for H1 FY22 rose to £841 million (£598 million), while attributable profit surged to £145 million (£48 million). Adjusted EBITDA accelerated to £341 million (£180 million).

Regionally, sales from Asia Pacific region grew by 19 per cent to £521.8 million (£439.4 million), due to good performance in Mainland China and South Korea driven by new and younger customers. Moreover, EMEIA region achieved sales of £360.9 million (£250.7 million), up 44 per cent over H1 FY21, while Americas sales increased BY 83 per cent to £309.9 million (£169.5 million).

Fibre2Fashion News Desk (JL)

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