Barberry’s FY22 revenue increased; The outlook depends on the recovery of Kovid in China

Despite the constantly challenging external environment, the British fashion house Barbary’s financial 2022 (FY22) earnings have increased by 10% compared to FY20 and FY21 vs. 23% in CER. LLY vs. full-price comparable store sales increased by 30 percent as a strategy to exit the mainline and digital markdowns as a component growth strategy in quality of revenue flow.

Barberry’s approach depends on the impact of Covid-19 and the recovery rate of consumer spending in mainland China.

Despite the constantly challenging external environment, the British fashion house Barbary’s financial 2022 (FY22) earnings have increased by 10% compared to FY20 and FY21 vs. 23% in CER. LLY vs. full-price comparable store sales increased by 30 percent as a strategy to exit the mainline and digital markdowns as a component growth strategy in quality of revenue flow.

Regionally, the U.S. has led full-price comparative store sales growth, with sales in the U.S. nearly doubling compared to the FY20. While regional lockdowns have affected performance, especially in March, the company said in its opening remarks that full-price comparative store sales were strong in South Korea, where they grew 81 percent, and in mainland China, where they grew more than 50 percent compared to FY20. Results for 53 weeks ending April 2, 2022.

Despite the decline in the number of tourists due to the travel ban on Covid-19, Barbary has seen an improvement in EMEIA.

Despite Brexit tariffs and supply chain inflation pressures, the company’s profit has improved with a consistent gross margin of 70.6 per cent on the CER, up 60bps. Consistent operating profit preceded the directive, rising 38 percent to ER 523 million at the rate reported in CER vs. FY21. FY22 also delivered a significant improvement in operating leverage with a consistent operating margin increase of 19 percent in CER (18.5 percent reported).

Over the years, the company has invested in clothing and leather products in its focus category. FY22 full-price outerwear sales increased 39 percent vs. LLY ৷ Leather products also provided a strong performance, with FY22 full-price sales benefiting LLY vs. Frances Tote in the fourth quarter with a 28 percent increase, a recent expansion of the TB family as part of its Summer 22 collection.

In total, the company now has 47 stores in the newly designed Rue St. Honor, including the flagship of Paris. For FY23, it plans to have 65 stores, which means that by the end of the fiscal year, about a quarter of its direct-operated stores will carry new designs.

Barberry further announced that it is now carbon neutral in its own activities worldwide; All the electricity it uses is from renewable sources; And almost all of these products have a positive feature, which means they carry a social or environmental benefit. The company’s goal is for the climate to become positive by 2040, not by netting 10 years before the 1.5-degree path set out in the Paris Agreement, but by further reducing emissions across its extended supply chain.

The company maintains guidance on higher single-digit revenue growth and meaningful margin growth at CER in the medium term. Although the current macroeconomic environment creates some near-term uncertainties, Barberry is actively managing headwinds from inflation. Based on the May 6, 2022 spot rate, it expects Y 159 million in revenue on FY23 and টেল 92 million in tailwinds for consistent operating profit.

Fibre2Fashion News Desk (KD)