LONDON, May 13 — Burberry today announced a surge in annual net profit, as the pandemic-hit luxury fashion brand benefited from a strong sales recovery in its final quarter.
Profit after tax grew more than three times to £376 million (US$523 million, 436 million euros) in the year to late March.
A year ago, Burberry was hit hard by the start of the pandemic in key market China.
“In spite of Covid-19, we achieved our objectives for the period..., ending the year with good full-price sales growth,” Burberry chief executive Marco Gobbetti said in the earnings statement.
Annual sales declined 11 per cent despite a 32-per cent hike in the first three months of 2021, or Burberry’s final quarter.
Burberry said 16 per cent of its stores worldwide remained closed owing to coronavirus lockdowns.
“In terms of online, we have continued to capture the recent shifts in consumer behaviour,” the company noted.
The group’s shares tumbled nearly nine per cent in reaction to the earnings update, making the group the biggest faller on London’s benchmark FTSE 100 index in morning deals.
“The overall performance had been largely anticipated by investors, with the share price having risen by 52 per cent over the last year, as compared to a gain of 19 per cent for the wider FTSE 100,” noted Richard Hunter, head of markets at Interactive Investor.
“A weak wider market and some elements of profit taking have made for an ugly start for the shares in response to the results.”
The FTSE 100 was down 2.0 per cent overall, with global equities hit by concerns over rising inflation. — AFP
