The Burberry Group Plc achieved a significant increase in sales in the past financial year thanks to lower price reductions.
Revenue rose 21 percent to 2.8 billion British pounds – the equivalent of about 3.3 billion euros. Like-for-like sales grew by 18 percent. The operating result was 543 million pounds sterling (641.4 million euros), 4 percent higher than a year earlier, the bottom line was a profit of 396 pounds sterling (467 euros). This is shown by preliminary figures published on Wednesday for the fiscal year that ended in April.
“The company has made great strides over the past five years to bring the brand, the product and the customer experience to the luxury space,” said Jonathan Akeroyd, Managing Director in a statement.
More sales at full price
The strength of the brand was reflected in an adjusted gross margin of 70.6 percent, according to Burberry, which was achieved through price increases and the sale of more goods at full price. Full-price sales in outerwear increased 39 percent year-on-year and leather goods increased 28 percent.
In the fourth quarter of the financial year, the Burberry Group Plc felt the effects of the corona measures taken in China. Like-for-like sales growth has already slowed to 7 percent compared to the prior-year quarter. The forecast for sales growth in the high single-digit percentage range for the current financial year is therefore dependent on the recovery in consumer behavior in China.
“While current macroeconomic conditions create uncertainty, we are actively addressing the impact of inflation,” the company said in its annual report.