Luxury fashion retailer Burberry has reported a 27% decrease in like-for-like sales in its fourth quarter results, attributing the loss to the coronavirus pandemic.
The fashion retailer also revealed a 57% drop in operating profit to £189m compared with £437m during the same period last year.
Additionally, in its preliminary results for the year ended 28 March 2020, Burberry reported a 3% decrease in revenues to £2.6bn compared with £2.7bn in the same period last year.
Adjusted operating profit decreased by 1% to £433m compared with £438m in 2019. Meanwhile, pre-tax profit for the year declined by 62% to £169m.
Burberry also revealed 60% of its stores temporarily closed its doors by end of the Q4 trading period due to the Covid-19 pandemic, as the retailer revealed a final dividend “has not been declared” with future dividend payments to be reviewed at end of FY 2021.
Marco Gobbetti, chief executive officer, said: “Prior to Covid-19, we were delivering strong momentum across our brand and product, with sales ahead of our expectations. Since then, the global health emergency has had a profound impact on the world, our industry and Burberry but I am very proud of the way we have responded.
“We have taken swift action to mitigate the financial impact on our business, while prioritising the safety and wellbeing of our teams and customers. We have a strong balance sheet and liquidity, with space for investment when markets recover. We have found new ways to strengthen our connection with consumers, drawing on our digital leadership.”
He added: “We have also mobilised our resources in support of the relief efforts. It will take time to heal but we are encouraged by our strong rebound in some parts of Asia and are well-prepared to navigate through this period.
“Now, more than ever, our strategy to secure our position in luxury fashion is key. I would like to thank our teams for their dedication and leadership during these challenging times”
Earlier this year, Burberry warned that its sales for the year ended March 2020 will be impacted by the recent coronavirus outbreak.
In February, the fashion retailer said its recent guidance for the current financial year “predates the impact”, and currently 24 of its 64 stores in mainland China are closed with remaining stores operating with reduced hours and “significant” footfall declines.