Burberry Group PLC (LSE:BRBY) said profits and revenue were up in the 2022 financial year, but warned that the outlook for the current year is dependent on COVID-19 recovery in China.
For the year ending 2 April 2022, revenue increased to £2.8bn from £2.3bn, while operating profit grew to £543mln from £521mln, with the fashion brand maintaining its guidance of high single-digit revenue growth.
Adjusted operating profit was ahead of guidance, rising 38% to £523mln, Burberry said in its full-year results statement. A 210 basis points increase in the adjusted operating margin to 18.5% “demonstrates significant progress” towards its medium-term ambitions, it added.
Revenue growth was delivered “despite a continuing challenging external environment”, with lockdowns in Mainland China weighing on store sales in March.
The London-listed company said its outlook is “dependent on the impact of COVID-19 recovery in consumer spending” in China.
Burberry said current macro-conditions are creating some "near-term uncertainty", but that is actively managing the costs from inflation.
It forecast a currency tailwind of £159mln on revenue and £92mln on adjusted operating profit for the 2023 financial year, based on spot exchanges rates on 6 May 2022.
“The company has made great progress over the last five years to elevate the brand, product and customer experience into the luxury space,” said chief executive Jonathan Akeroyd.
“I look forward to setting out my plans for building on these strong foundations and accelerating growth at the interim results in November."