Burberry upgrades guidance after strong rebound in sales By Reuters

LONDON (Reuters) – British luxury group Burberry said on Friday it had seen a strong rebound in sales since December, which it expected to result in profit for the year to March 27 beating market forecasts.

In an unscheduled trading update, the company said comparable store retail sales in the final quarter of its financial year were expected to be 28% to 32% higher than the same period last year.

“Since December, we have continued to see a strong rebound and now expect revenue and adjusted operating profit to be ahead of consensus expectations,” it said.

For the full year, it said it expected group revenue to decline by 10% to 11%, while its adjusted operating margin would to be in the range of 15.5% to 16.5%.

Burberry, which showed its first menswear-focused collection by designer Riccardo Tisci last month, has seen a strong recovery in sales in mainland China and South Korea.

Growth in Asia has in part offset declines in Europe, where regional COVID-19 lockdowns and travel restrictions have shut stores and deterred tourists.

Analysts on average had expected group revenue at constant exchange rates to decline 13% for the year, according to a consensus compiled by the company in January.