Burberry has posted an 18% rise in its first-quarter comparable store sales for the 13 weeks ending July 1, reaching revenues of £589m.
Boosted by a continued recovery in its biggest market China, the luxury British fashion retailer’s core categories, including outerwear and leather goods, also performed well, said CEO Jonathan Akeroyd.
The business said outerwear comparable store sales were up 36%, led by “heritage rainwear”, such as its trench coats which sell for upwards of £1,400.
Sales in Mainland China were up 46% – as one of the world’s biggest markets for luxury goods continued to rebound from stringent Covid lockdowns last year, while sales in Europe rose 17%.
Although the results in Americas were a weak spot for the business, with quarterly sales down 8%, they are yet broadly in line with its previous quarter.
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Jonathan Akeroyd said: “We have made good progress in the quarter delivering high teens comparable revenue 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 [Lee’s] product arriving in stores in September.
“While mindful of the uncertain macroeconomic environment, we are confident of achieving our 2024 full-year and medium-term guidance.”
Burberry predicts that its revenue will grow at a rate in the high single digits on average each year, and by the end of 2024, the company expects its sales to increase by a low double-digit percentage.
However, Burberry anticipates a currency headwind of £150m to revenue and around £70m to adjusted operating profit based on current exchange rates.
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