Burberry cautions post-pandemic recovery will take ‘some time’

The retailer and brand said that it was optimistic following a revival of trading in China but that it could not provide financial guidance for the current year.

Burberry posted an 8% pro forma fall in adjusted operating profit to £404m for the year to March 28, and at a reported level the decline was 63% to £160m. Revenue fell 3% to £2.63bn.

The retailer said: “We feel confident in the strength of the Burberry brand and are encouraged by the recovery we are experiencing in mainland China and Korea, with cumulative sales in both markets since the beginning of April ahead of the prior year, albeit it is likely there is a benefit from some repatriation of spending in mainland China.

“However, as government restrictions ease across the globe, consumers in different markets are likely to respond in distinct ways, with the travelling consumer likely to take longer to return. As a result, it could take some time for the luxury industry to recover to pre-crisis levels.”

Chief executive Marco Gobbetti said: “Prior to Covid-19, we were delivering strong momentum across our brand and product, with sales ahead of our expectations.

“Since then, the global health emergency has had a profound impact on the world, our industry and Burberry, but I am very proud of the way we have responded. We have taken swift action to mitigate the financial impact on our business, while prioritising the safety and wellbeing of our teams and customers.

“We have a strong balance sheet and liquidity, with space for investment when markets recover. We have found new ways to strengthen our connection with consumers, drawing on our digital leadership.

“We have also mobilised our resources in support of the relief efforts. It will take time to heal, but we are encouraged by our strong rebound in some parts of Asia and are well-prepared to navigate through this period.”