Daily Management Review

Burberry sales for the half year prove better than expected


Burberry, a British manufacturer of apparel, accessories, and footwear, disclosed sales for the first six months of its fiscal year 2022, finished on October 1. The company's in-store sales climbed by 11% and totaled £ 1.35 billion, above projections of both the company and analysts.

According to Bloomberg, revenues were boosted by American consumers who started aggressively purchasing luxury goods from Europe as the value of the dollar increased.

Sales of Burberry products increased 34% in the EMEIA region during the first half of the year, which comprises Europe, the Middle East, India, and Africa. This expansion was sufficient to counteract modest revenue reductions in the Americas (-3%) and Asia-Pacific (-4%). Sales fell the most in Asia-Pacific in China, down 19%, where authorities continue to impose pandemic restrictions in some areas. In Europe, France and Spain saw the fastest growth in Burberry sales. 

Burberry's overall gross profit increased by 12% to £942 million, its operating profit by 27% to £263 million, and its gross margin increased by 80 basis points to 70.1%. The British company's stock increased 0.45% in trading in London as a result of the news.

source: ft.com