Burberry has reported a slow growth in sales over Christmas as a result of Covid-related disruption in China.

The luxury fashion operator posted a 1% increase in store sales to £756m in the 13 weeks to December 31, 2022, compared to a 7% jump over the same period in the previous financial year.

Outside of mainland China, sales rose 11% during the quarter, which the company credited to its customer engagement as a result of a “strong programme of brand activations” and its social media engagement being on the rise.

Comparable store sales grew 19% in Europe, shrunk 1% in the Americas, shrunk 7% in Australasia and the Pacific, and fell 23% in mainland China. 

The company said sales of accessories boomed, particularly within its range of leather goods, and outerwear was also said to have performed well outside of China.

In terms of outlook, the retailer said it expects a “currency tailwind of circa £160m on revenue and circa £70m on adjusted operating profit” this year, as a result of an improvement in foreign exchange rates.

Chief executive Jonathan Akeroyd said: “Overall, we are pleased with our performance in the third quarter as double-digit revenue growth outside of mainland China offset the impact of Covid-19-related disruption there. 

“Europe, in particular, continued to perform well, driven by strong trading over the festive period and leather goods delivered another quarter of double-digit growth globally. 

“We remain confident in our ability to reach our medium-term targets, despite the current macroeconomic environment.

“We are focused on executing our plan to realise Burberry’s potential as the modern British luxury brand and we look forward to unveiling [new chief creative officer] Daniel Lee’s debut collection for Burberry on our return to London Fashion Week next month.”