Burberry has returned to profitable comparable sales growth, as chief executive Joshua Schulman said the luxury retailer’s turnaround strategy was beginning to pay off.
The British fashion house posted a two per cent rise in comparable store sales for the year to 28 March, boosted by a stronger fourth quarter, when sales climbed five per cent.
Revenue fell two per cent to £2.4bn over the full year, although adjusted operating profit rose sharply to £160m, up from £26m the previous year.
Burberry said its performance was supported by growth in key markets, with sales in the Americas and China both rising four per cent over the year. Both regions delivered 10 per cent growth in the fourth quarter.
Sales across EMEIA were flat, as the group continued to be impacted by weaker tourist activity.
During the year, Burberry focused on improving its in-store experience, driving cross-category merchandising and increasing store productivity.
This included the rollout of 200 scarf bars, which helped the category outperform.
Schulman said: “This financial year marks a meaningful inflection point for Burberry. We’ve returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas.
“Our strategy is working and there are clear opportunities for further growth. As we look ahead, while mindful of the uncertain macroeconomic environment, our focus is on disciplined execution of Burberry Forward.
“With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation.”
Burberry also confirmed that Gerry Murphy will step down as chair in November, after joining the board in 2018.
He will be succeeded by William Jackson, founder and former chief executive and chair of Bridgepoint Group.
The appointment follows a search process led by Burberry senior independent director Orna NiChionna.
NiChionna said: “We are delighted to welcome William to the board. He brings a broad range of skills and experience to support the next stage of our growth, including senior executive and non-executive leadership roles and a strong track record of leading and scaling businesses across international markets.”
She added: “On behalf of the board, I would like to thank Gerry for his exceptional leadership over the past several years.
“His stewardship during a period of significant disruption and change in the luxury sector has been important in creating a more resilient business with a strong platform for the next chapter of Burberry.”
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