British luxury fashion retailer, Burberry reported it had enjoyed a strong first quarter, with sales almost doubling despite store closures.
The fashion group - noted for its iconic tartan designs - said in its trading update on Friday that retail revenue for the 13 weeks to 26 June rose to £479m, compared to £257m for the same period in 2020.
Burberry said it had seen 26% growth in full-price sales in comparison to the previous year, driven by a younger clientele and sale volumes of markdowns online and in mainline stores around the world.
The company recently relocated from its iconic spot in Knightsbridge and reopened its flagship shop in Sloane Street, London. Three more stores are to follow in the next 12 months.
New store concept in the bag
As Burberry searches for a new chief executive, departing boss Marco Gobbetti, who is leaving the luxury brand after five years at the helm, said that Burberry has made an “excellent start to the new fiscal year”.
“Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand. We saw strong growth across our strategic categories, in particular leather goods and outerwear, and exited markdowns in digital and mainline stores,” Gobbetti said.
“We continued to roll out our new store concept that will transform how customers experience our brand and product in a uniquely British luxury setting. Despite the continuing challenging external environment, we are very pleased with the progress against our strategy. With the Company firmly set on a path of growth and acceleration, we are confident of achieving our medium-term goals,” he added.
Kunal Sawhney, chief executive equity research group Kalkine Group said that the latest update from Burberry indicated the company was on track to make a full recovery.
“This highlights the company’s rebound back to pre-pandemic levels despite ongoing trading challenges, that were primarily driven by a significant boost in its full-price comparable sales, as Burberry’s collections and campaigns drew in a younger luxury clientele.
“Also, the company’s significant growth across leather goods, outerwear, and other strategic segments, in addition to exiting markdowns from digital and mainline stores helped drive this quarter’s rebound,” Sawhney said.
Investors were less impressed, however, and the shares fell 3.3% to £20.02.