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Bloomberg
Burberry Group Plc’s sales remained below 2019 levels despite a quarterly jump, showing the British brand is trailing some luxury peers in recovering from the pandemic. The shares fell as much as 10%.
Comparable store sales in the three months through March soared 32%, the company said in a statement. That was in line with its own forecast. Revenue was still 5% below the level of two years earlier. Sales at luxury rivals LVMH and Hermes International both exceeded 2019 amounts last quarter.
The performance shows “there is still work to do†at Burberry, according to Luca Solca, analyst at Sanford C Bernstein. The company is cutting the number of promotions as it seeks to preserve its upscale image among consumers looking to splurge on quilted Lola bags or Barn jackets.
That could make for tough sales comparisons against previous periods for Burberry, one of the first luxury companies to drop its financial guidance
last year when Covid-19 shuttered stores.