Burberry shrugs off tough environment to post record revenues

Fashion brand Burberry has recorded a 10% increase in its revenues despite a “continuing challenging external environment”, as it issues its preliminary results for the 53 weeks ended 2 April 2022.

The company, which has bases in West Yorkshire, reported record revenues of £2.8bn during this period (2021 £2.3bn) along with pre-tax profits of £511m (£490m). Comparable store sales grew 18% compared to FY21, against a background of recovery from the pandemic.

Over the financial year, Burberry opened 38 stores and closed 35. Key openings included three new flagship stores; Sloane Street (London), Rue Saint Honoré (Paris) and Plaza 66 (Shanghai).

FY22 was also the first year of the growth and acceleration phase of the company’s strategy. Jonathan Akeroyd, chief executive officer, said: “Burberry is a unique British company with an extraordinary history and heritage and it is a privilege to take the reins in this next phase.

“The company has made great progress over the last five years to elevate the brand, product and customer experience into the luxury space.

“I look forward to setting out my plans for building on these strong foundations and accelerating growth at the interim results in November.”

The business adds it is maintaining its guidance of high single-digit revenue growth and meaningful margin accretion at constant exchange rates in the medium-term.

Its outlook update notes: “Our outlook is dependent on the impact of COVID-19 and rate of recovery in consumer spending in Mainland China.

“While the current macro-economic environment creates some near term uncertainty, we are actively managing the headwind from inflation. Based on 6 May 2022 spot rates we expect a currency tailwind of £159m on revenue and £92m on adjusted operating profit in FY23.”