Burberry upgrades full-year forecasts as trading rebounds

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Burberry Group PLC (LON:BRBY) said revenue and adjusted operating profit for the year to March 27 are expected to be ahead of consensus.

In an unscheduled trading update, the FTSE 100 luxury fashion powerhouse said it has continued to see a strong rebound in trading since December.

READ: Berenberg starts covering Burberry with ‘hold’ recommendation as strategy not resonating with consumer

Like-for-like retail sales for the fourth quarter are estimated to rise between 28% and 32% compared to the same period last year.

Full-year group revenue is now forecast to decline between 10% and 11%, with adjusted operating margin to be in the range of 15.5% to 16.5%.

As of January, the trenchcoat designer only had 15% of stores closed while 36% were operating with reduced hours or under regional restrictions.

In the 13 weeks to December 26, 2020, retail revenue fell by 4% to £688mln, with like-for-like store sales down 9%.

Store sales jumped 11% in the Asia Pacific region, with strong growth in Mainland China and Korea, but were down 37% in Europe, the Middle East, India, and Africa and 9% in the Americas due to COVID-19 disruption.

Digital full-price sales growth over 50% with Mainland China rocketing “in triple digits”.

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