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Burberry Q3 Retail Revenue, Comps Decline; Says Short-term Outlook Uncertain

Retailer Burberry Group plc (BRBY.L) reported Wednesday that its third-quarter retail revenue declined 4 percent to 688 million pounds from last year's 719 million pounds. Retail sales fell 5 percent at constant exchange rates.

Retail comparable store sales declined 9 percent, compared to a 3 percent increase a year ago. The decline in sales reflected planned reductions in markdown, and reduced tourist traffic in outlets offset high single-digit full-price sales growth.

The company noted that full-price sales growth was driven by new, younger clientele as well as repeat customers.

COVID-19 related store closures averaged 7 percent in the third quarter impacting trading.

Among regions, Asia Pacific Comparable store sales grew 11 percent with strong growth in Mainland China and Korea. Meanwhile, EMEIA fell 37 percent due to fewer tourists and COVID-19 related store closures.

Americas' comparable store sales declined 8 percent as mid-teen increase in full-price sales was more than offset by planned reductions in markdown activities.

The company recorded digital full-price sales growth over 50 percent with Mainland China in triple digits.

Looking ahead, the company said that notwithstanding further COVID-19 disruption, it expects continued progress on strategic objectives in the fourth quarter. Gross margins will benefit from full price, regional, and channel mix changes as well as lower stock provisions.

Marco Gobbetti, Chief Executive Officer, said, "While the short-term outlook remains uncertain due to COVID-19, we are well placed to accelerate when the pandemic eases."

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