The luxury group Burberry closed the first quarter of its new fiscal year with a surprising piece of information. It recently announced the departure of its CEO, Marco Gobbeti. At the same time, its commercial activity in the first quarter showed a very strong growth. Discover here the figures illustrating this encouraging performance.
At the end of last week, the stock fell 3.45% to 1,999.2 despite the very encouraging first quarter results. The market had expected Burberry to raise its targets. But it maintained its guidance for the year 2022. Only its forecast for wholesale sales to distributors (Wholesale) has been changed. It now expects 60% sales growth in the first quarter.
Similarly, the group that invented the trench coat has sounded the alarm about the fact that currency effects will have a negative impact on sales.
They will weigh more than 114 million pounds on sales and more than 40 million pounds on the 2022 adjusted operating profit. On the other hand, the group is on track to achieve its medium-term target of 10% (high single-digit) revenue growth.
Note: The luxury group also assured that its goal of significantly improving its margin remains on track.
UK-based Burberry Group has delivered an outstanding quarterly performance in the first three months of its fiscal year 2022. This quarter spans a 13-week period that ended on June 30. The company's business over this period generated over £479 million. This represents growth of 98% at constant exchange rates.
The group's like-for-like sales increased by 90% in the first quarter. Over the same period last year, Burberry recorded a 45% drop in sales. On the other hand, they showed a 1% growth compared to the first quarter two years ago. As of June 26, 2021, the British company has seen its retail sales soar by 86%.
In conclusion, Burberry is returning to pre-Health Crisis levels of growth thanks to outerwear and leather goods marketing. Online sales were key in the first quarter with a significant acceleration in full-price sales. The group was able to attract many new luxury customers to its brand through its campaigns and collections.
At the same time as the Burberry group is making an excellent start to the fiscal year, its chief executive Marco Gobbetti is stepping down from his post. The man will join the Italian luxury group "Salvatore Ferragamo" according to information gathered from both companies. Marco Gobbetti will leave the company at the end of the year. Let us recall that he occupied these functions for four years.