LONDON (Businesshala) – Burberry sales were flat in the second quarter due to inclement weather and COVID-19 travel restrictions in China, giving the fashion brand a better-than-expected profit.
Shares of the company fell as much as 10% in early trading Thursday, excluding gains they’ve made since mid-October, much like second-quarter store sales from two years ago amid the pandemic. before getting hit. ,
Chief Financial Officer Julie Brown said customer numbers in China declined in August, but were in line with expectations in September and October.
China is the largest market for barberry, and growth in the country, along with South Korea and the United States, saw their revenues reach pre-pandemic levels in the first half of their fiscal year.
The company, which recently named Versace boss Jonathan Ackroyd as its new chief executive, reported revenue of 1.21 billion pounds ($1.64 billion) for the six months to September 25, up 45% at constant exchange rates.
Adjusted operating profit came in at £196 million, nearly four times the level achieved a year ago and beating expectations.
Chairman Gerry Murphy said Burberry’s performance is seeing an uptick in countries less affected by travel restrictions and is confident of achieving its medium-term goals.
The company, which is known for its camel, black and red checks and new “TB” monogram, said full-price sales in the US nearly doubled, while South Korea grew by nearly 80%, and the main The land in China increased by more than 40%.
Other regions, such as Europe, are under pressure to reduce tourist levels.
Akeroyd will join Burberry next April, following Marco Gobetti, who announced his departure in June, in the midst of a multi-year turnaround to take the brand more marketable.
($1 = 0.7389 pounds)