Burberry sales jump 18% as China trade rebounds
Outerwear sales also boosted trading in Q1, with the category’s store sales up by 36%, led by sales of the brand’s heritage rainwear
Burberry has welcomed a strong first quarter of trading as store sales rose by 18% to £589m, largely driven by a strong recovery in Mainland China, where sales rocketed 46% in the period.
Aside from recovery in Mainland China, where trade benefited from the end of Covid-19 related lockdowns last year, the brand also benefited from strong underlying growth in EMEIA, South Asia Pacific and Japan, although sales in the Americas fell by 8%.
Outerwear sales also boosted trading in Q1, with the category’s store sales up by 36%, led by sales of the brand’s heritage rainwear.
Leather goods also sold well, with sales up by 13% in the quarter, as women’s bags, particularly the Frances shapes and vintage Burberry Check line, performed well.
Over the period, the brand reopened its flagship store on New Bond Street, London, and in total 19 stores were refurbished in the quarter.
Looking ahead, the group expects a low double-digit revenue growth in FY24, but has also predicted a currency headwind of around £150m to revenue and around £70m to adjusted operating profit for the year.
CEO Jonathan Akeroyd said: “We have made good progress in the quarter delivering high teens comparable revenue growth led by the ongoing recovery in Mainland China.
“We saw continued strength in our core outerwear and leather goods categories and are excited about Daniel’s product arriving in stores in September. While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance.”
