Burberry plc (LON: BRBY) published its financial update on Wednesday that highlighted a decline in its third-quarter comparable retail store sales that matched its earlier guidance. The decline, however, was broader than what analysts had anticipated.
In separate news from the UK, Frasers increased its stake to 15.2% in Hugo boss through stocks and derivatives on Wednesday.
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Burberry shares that you can learn to buy online here, were reported about 1.5% up in premarket trading on Wednesday and gained another 3% on market open. The stock is now trading at a per-share price of £17.86.
Burberry expects a 10% decline in its annual comparable retail sales
Burberry said that its sales in India, Africa, Europe, and the Middle East in particular remained under pressure in recent months as the COVID-19 crisis weighed on travel and tourism. For the 13 weeks that concluded on 26th December, the luxury fashion house reported a 9% decline in its like-for-like retail store sales a slightly narrower 7% decline expected.
The London-based company’s forecast for a decline in its annual comparable retail sales now stands at 10%. Burberry also said on Wednesday that its retail revenue in the recent quarter slid to £688 million. In the comparable quarter of last year, its retail revenue had come in at a higher £719 million.
In the Asia Pacific, the British company reported an 11% growth in comparable sales attributed primarily to Korea and Mainland China. Americas and EMEIA, on the other hand, saw an 8% and a 37% decline in like-for-like sales.
Burberry says 15% of its stores are still closed for the public
According to Burberry:
“We expect the underlying performance in the fourth quarter will show a continuation of progress on strategic priorities.”
As per the FTSE 100 listed company, it has reduced operating hours at 36% of its stores while another 15% are still closed for the public to minimise the fast-spread of the flu-like virus that has so far infected more than 3.4 million people in the United Kingdom and caused over 91 thousand deaths.
Burberry’s comparable sales had declined 45% in the fiscal first quarter when the impact of the Coronavirus pandemic was at its peak. The British firm performed fairly downbeat in the stock market last year with an annual decline of close to 20%. At the time of writing, Burberry plc is valued at £7.41 billion and has a price to earnings ratio of 356.35.