Burberry raises its profit guidance after sales leap

Burberry, which has made its most iconic products in Castleford and Keighley in Yorkshire for over 100 years, said its adjusted operating profit for the year to April 3 would rise by 35 per cent at constant exchange rates. Analysts had expected a rise of 19 per cent to £472m.

The firm said that full price like-for-like store sales were 26 per cent higher than the same period two years ago, while comparable store sales on the same measure were down 3 per cent due to its planned reduction in markdowns.

Burberry's chairman, Gerry Murphy, said: "Despite the ongoing challenges of the external environment, we are confident of finishing the year strongly and providing an excellent platform on which to build when our new CEO, Jonathan Akeroyd, joins in April."

The firm added: "We continued to strengthen our position with new, younger consumers, with new customers driving double digit full-price sales growth across all product categories.

"Regionally, full price comparable store sales were driven by continued strong performance in the Americas, a material sequential improvement in Asia Pacific as Covid-19 restrictions eased and improving trends in EMEIA despite an ongoing lack of tourism.

"In terms of brand activity, we continued to drive engagement with consumers through distinctive and meaningful storytelling and experiences. In the quarter, we launched our first dedicated outerwear campaign celebrating our iconic outerwear offer with an inspirational brand film unlocking the themes of freedom and exploration, which achieved record views across digital media, and launched activations across physical and digital channels.

"As we enter our final quarter, we are excited about the recent launch of our Lunar New Year campaign celebrating the year of the Tiger with a bespoke product capsule and dedicated fashion campaign."

Burberry said it has continued its support for young people, extending its partnership with international footballer and youth advocate, Marcus Rashford, to help disadvantaged children in the UK develop their literacy skills.

"On World Mental Health Day we also launched a new Global Bereavement Policy, leaders’ guide and colleague support site, which includes paid time off for all colleagues who suffer a bereavement, including pregnancy loss," the firm added.