Burberry same-store sales fall more than expected

Burberry same-store sales fall more than expected

Burberry PLC said Wednesday that comparable retail store sales in the third quarter of fiscal 2021 fell in line with its own views but by more than the market expected, with the Europe, Middle East, India and Africa region hardest hit due to fewer tourists.

Burberry, known for its trademark checked-print clothing, said comparable retail store sales for the 13 weeks ended Dec. 26 declined 9% in the period, while they rose 3% in the third quarter of fiscal 2020. The metric was expected to decline 7%, according to the average of the company’s 17 estimates.

Full-year comparable retail sales are expected to decline 10% in average, taken from Burberry’s compilation of 17 forecasts.

The FTSE-100 luxury goods company said retail revenue fell to 688 million pounds ($938 million) compared with GBP719 million for the same period a year earlier.

Burberry said comparable sales rose 11% in Asia Pacific, with strong growth in Mainland China and Korea. However, retail sales in EMEIA and Americas fell by 37% and 8%, respectively.

“We expect the underlying performance in the fourth quarter will show a continuation of progress on strategic priorities,” Burberry said.

The company said 15% of its stores are closed and 36% are operating with reduced hours or restrictions due to the coronavirus pandemic.

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