Burberry says recovery from COVID-19 accelerating

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The label, known for its trench coats, check fabric and TB monogram, reported a 10% drop in sales for the year to March 27, impacted by store closures and reduced tourism.

However, it said fourth quarter comparable store sales increased 32% year-on-year, despite an average of 16% of stores being closed.

It said full-price sales grew 63% in the quarter driven by mainland China, Korea and the United States. At the end of its financial year Burberry faced calls for a consumer boycott in the important Chinese market over Xinjiang cotton.

Burberry reported an adjusted operating profit of 396 million pounds ($556 million) – ahead of analysts’ average forecast of 378 million pounds but down 8% from the 433 million pounds made in 2019-20.

The full year dividend was reinstated at 2019 levels of 42.5 pence.

($1 = 0.7118 pounds)