Covid-19 lockdown impacts Burberry's sales, cuts dividend
By Prachi Singh
May 22, 2020
In a preliminary results statement for the year to March 28, 2020, Burberry Group plc reported revenues of 2,633 million pounds (3,214.7 million dollars), down 3 percent, while fourth quarter comparable store sales declined by 27 percent with around 60 percent retail stores closed at end of March.
“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. 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,” said Marco Gobbetti, Chief Executive Officer of Burberry in a statement.
The company said that the company’s operating profit fell to 188.7 million pounds from 437.2 million pounds, while its net profit decreased to 121.7 million pounds, down from 339.1 million pounds. The company’s board has declared a dividend of 11.3 pence a share, down from 42.5 pence a share at the end of the previous year to protect its future cash position.