For the first half of 2022, Burberry reported revenue of GBP 1.345 billion, a 5 percent CER increase and an 11 percent increase over the prior period.
A 5 percent increase in the company’s retail comparable store sales was reported, while wholesale sales went up by 1 percent and 6 percent, respectively.
“Our focus in this next phase is on growth and acceleration. I am excited about what we can achieve in pursuit of our long-term ambition to reach GBP 5 billion in revenue.” Jonathan Akeroyd, Burberry’s chief executive officer in a statement.
As reported by the company, the adjusted operating profit for the period under review was GBP 238 million, an increase of 6 percent CER and 21 percent reported.
While adjusted gross margins at CER remained flat and increased 80 basis points at reported rates, adjusted operating profit margin increased 150 basis points at reported rates and 10.3 percent at CER.
In its new medium-term target, the company projects sales growth to GBP 4 billion at CER, while maintaining high single-digit growth and maintaining good margins.
Handbags with the Lola and the Frances shape for AW22 saw good sales growth in Burberry’s leather goods with comparable sales increasing 15 percent in the second quarter and 11 percent in the first half.
There was a 3 percent growth in outerwear comparable sales in the first half of the year, impacted by lockdowns in Mainland China. Across men’s and women’s collections, the performance outside of Mainland China grew 18 percent.
There were 22 Burberry stores that opened or underwent renovations in the first six months, including Bal Harbour in Miami and Taipei 101. Adding to the 47 stores from FY22, the company plans to open or refurbish 65 new stores this year.