Burberry Posts 2% Comparable Sales Growth, Boosted by Americas and China

Burberry said this fiscal year marked a "meaningful inflection point," as it posted quarterly results, boosted by strong growth in the important Americas and China markets. Comparable sales grew 2% over the fiscal year, helped by a 10% growth in both the Americas and China in the quarter ended March, the British luxury outerwear maker said. "All boxes ticked, execution firmly on track," said Citi analysts after the print. Full-year revenue came in largely in line with expectations at £2.4 billion ($3.25 million), flat at constant exchange rates. "We've returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas," CEO Joshua Schulman said in a statement. "Our strategy is working and there are clear opportunities for further growth." Burberry shares fell 5% in early London trading. Analysts said that the solid end to the year was expected as the company's turnaround efforts bear fruit, and outdoor peer Moncler posted a strong quarter in April. Jefferies analysts largely attributed the significant 4% profitability beat to Burberry's cost-saving program, but said it was likely below expectations of more bullish buy-side hopes. Full-year adjusted operating profit came in at £160 million, up from £26 million a year ago. Burberry said it was "mindful of the uncertain geopolitical and macro-economic environment and its potential impact on consumer confidence," but said it expects to make further progress on financial ambitions in 2027. The conflict in the Middle East has hit many of Burberry's peers hard. LVMH, Kering, and Hermes disappointed investors with earnings misses last month, driven by subdued sales in the region. The region typically accounts for mid-single-digit sales for major luxury brands, but had been a bright spot in a sector that experienced largely sluggish growth elsewhere. Burberry said comparable sales in EMEA and India declined 2% due to the reduced tourism in the region and the Middle East conflict towards the end of the quarter.