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(Alliance News) - Burberry Group PLC on Wednesday said sales improved in the lead-up to Christmas and it expects to see a softer foreign exchange hit to annual results.
Shares in the company were 6.2% higher at 1,864.00 pence each in London on Wednesday morning. It was the best FTSE 100 performer.
The luxury fashion retailer, famed for its trench coats and check print, said retail revenue in the 13 weeks to December 25 - the company's financial third quarter - rose 5.1% annually to GBP723 million from GBP688 million.
Full-price comparable store sales improved 15% year-on-year, with all comparable store sales up 7%. On two years prior, being before the impact of the pandemic, full-price comparable store sales were up 26%, but all comparable store sales were down 3%.
During the period, which included the crucial run-up to Christmas, the London-based firm said it succeeded in attracting younger shoppers.
Chair Gerry Murphy said: "Full-price sales continued to grow at a double-digit percentage compared with two years ago, accelerating from the previous quarter and reflecting a higher quality business. Our focus categories outerwear and leather goods performed strongly as we continued to attract new, younger consumers to the brand. Despite the ongoing challenges of the external environment, we are confident of finishing the year strongly and providing an excellent platform on which to build when our new CEO Jonathan Akeroyd joins in April."
Burberry expects adjusted operating profit for the financial year that ends on April 2 to rise 35%, at constant currency and excluding the impact of an extra week of trading. Adjusted operating profit in the previous financial year, came in at GBP396 million, down by 8.5% on financial 2020.
Burberry now expects just a GBP79 million currency hit to annual revenue, having previously forecast GBP100 million. Adjusted operating profit is to take a GBP27 million hit, with Burberry lowering its forecast from GBP40 million.
Burberry will announce annual results on May 18.
During the third quarter, comparable store sales in the crucial Asia Pacific market were flat compared to pre-pandemic times. The unit includes mainland China, South Korea and Japan.
"Japan and South Asia Pacific improved quarter on quarter as Covid-19 related restrictions eased however performance remains soft due to limited tourist traffic," Burberry said.
In the Americas, comparable store sales were 8% higher than pre-virus levels, while in Europe, the Middle East, India, and Africa, they were 17% lower.
On the EMEIA region, the retailer said: "We are very encouraged by the performance given the ongoing drag from the lack of tourists, which accounted for around 40% of pre-pandemic revenues in the region."
Luxury goods peer Compagnie Financiere Richemont SA on Wednesday also reported a sales hike.
Sales surged 35% to EUR5.66 billion for the financial third quarter that ended December 31 from EUR4.19 billion in the prior year, driven by double-digit increases in all regions, channels and business areas.
Richemont said its latest quarterly performance "substantially" exceeded pre-pandemic levels.
By Eric Cunha; ericcunha@alliancenews.com
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