* 2020-21 revenue down 10%
* Q4 comparable store sales up 32% year-on-year
* Forecasts 'high single digit percentage' sales growth
(Adds detail)
LONDON, May 13 (Reuters) - Burberry said on
Thursday its recovery from the COVID-19 pandemic was
accelerating, partly due to a rebound in China, allowing the
British luxury brand to reinstate a dividend payment.
Other big luxury groups like Hermes, Kering
and LVMH are also on course to put the
COVID-2019 crisis behind them, with first-quarter revenues
already exceeding pre-pandemic levels.
The label, known for its trench coats, check fabric and TB
monogram, reported a 10% drop in sales for the year to March 27,
hit by store closures and reduced tourism.
The company's shares fell around 8% in early trading.
But Burberry said fourth-quarter comparable store sales
increased 32% year-on-year, despite an average of 16% of stores
still being closed.
It said full-price sales rose 63% in the quarter driven by
mainland China, Korea and the United States.
In March, Burberry faced calls for a consumer boycott in the
Chinese market over Xinjiang cotton.
Taking full-year 2020 as the base year, Burberry expects
revenue to grow in the medium term at "a high single digit
percentage" compound annual growth rate at full-year 2021
constant exchange rates.
The company said this growth will be driven by full-price
sales as the fashion company exits markdowns in mainline stores
in full-year 2022.
Burberry also said that the move to reduce markdowns would
be a headwind against comparable store sales growth amounting to
"a mid-single digit percentage" in the year.
The company said adjusted operating margin progression
during the year would be impacted by increased investment to
accelerate growth.
Burberry reported an adjusted operating profit of 396
million pounds ($556 million) - ahead of analysts' average
forecast of 378 million pounds, but down 8% from the 433 million
pounds made in 2019-20.
The full-year dividend was reinstated at 2019 levels of 42.5
pence.
Shares in Burberry, up 18% so far this year, had closed on
Wednesday at 2,104 pence, valuing the business at 8.57 billion
pounds.
($1 = 0.7118 pounds)
(Reporting by James Davey; editing by Michael Holden and Jane
Merriman)
Burberry (BRBY)