Burberry’s half-year sales were better than expected

British manufacturer of clothing, footwear and accessories Burberry reported for the first half of its fiscal year 2022 ending October 1. Sales in the company’s stores rose by 11%, which is higher than the forecasts of the company and the expectations of analysts, and amounted to £1.35 billion. Bloombergsales were supported by American buyers who, taking advantage of the strengthening dollar, began to actively purchase luxury goods in Europe.

At the same time, in the half year, sales of Burberry goods grew only in the region, which includes Europe, the Middle East, India and Africa (EMEIA), by 34%. This growth was enough to offset slight declines in sales in Asia Pacific (-4%) and the Americas (-3%). In the Asia-Pacific region, the largest drop in sales was recorded in China – by 19%, where the authorities still maintain strict anti-covid restrictions in a number of regions. In Europe, Burberry sales grew fastest in France and Spain. Wholesale sales increased by 6% – behind the low growth is the cessation of deliveries of Burberry products to Russia, and this situation could not be compensated by good growth in wholesale sales in the EMEIA regions and in the Americas.

Overall, Burberry’s gross profit rose 12% to £942m, gross margin rose 80 basis points to 70.1%, and operating profit rose 27% to £263m. .45% during trading in London.

Alena Miklashevskaya