StockMarketWire.com - High fashion retailer Burberry warned sales would continue to be 'materially impacted' by the Covid-19 pandemic in the second quarter, after falling sharply in the first.

Comparable sales declined 45% in the first quarter, with the fall easing to 20% in June.

Growth in Mainland China and Korea in June were ahead of pre-Covid-19 levels, albeit with some benefit from the repatriation of sales given Covid-19 travel restrictions.

Retail revenue for the 13 weeks ended June fell 48% and comparable sales were down 45%, driven by large declines of 75% and 70% in EMEIA and the Americas, respectively.

'We are encouraged by the improving trends in all regions and the promising exit rate for June,' Burberry said.

Looking ahead, the company said it expected its second quarter - ending September 2020 - to continue to be materially impacted by the pandemic.

Second-quarter sales were expected to decline by 15% to 20% and wholesale sales by 40-to-50% in the first half of the year.

Gross margin was expected to decline by between around 200 and 300 basis points.

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