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Luxury fashion retailer Burberry reported a 9% fall in comparable store sales in the third quarter of the year as planned reductions in markdown and reduced tourist traffic in outlets offset high single-digit full-price sales growth.
Asia Pacific saw comparable store sales rise 11% with strong growth in Mainland China and Korea, while EMEIA was down 37% and Americas fell 8%.
EMEIA continued to 'see much lower tourist demand,' ... and region saw the biggest swing in store closures moving from 5% of stores closed in Q2 to an average 19% in Q3 FY2021,' the company said.
Full-price sales were 'particularly strong' in rebounding markets - Americas, Mainland China and Korea, driven a new, younger clientele as well as repeat customers, it added.
The company said it currently had 15% of stores closed and 36% operating with reduced hours or restrictions and an uncertain trajectory given the spread of the more transmissible new variants of COVID-19.
'Given this outlook, we expect trading will remain susceptible to regional disruptions as we close the financial year,' the company said.
'In terms of full year trading, notwithstanding any incremental lockdowns, we expect gross margins to benefit from positive full-price, regional and channel mix and lower stock provisions,' it added.