Burberry has posted a modest uplift in first-quarter sales as a decline in revenues in mainland China was offset by demand from shoppers across Europe, the Middle East, India and Africa.

Burberry reported a 1% rise in like-for-like store sales year on year in the 13 weeks to July 2, impacted by lockdowns in China.

Excluding mainland China, like-for-like sales rose 16%, driven by a 47% surge in sales across EMEIA – “where our more localised approach drove an increase in spending by clients in their home markets to above pre-pandemic levels”.

Overall retail revenue stood at £505m during the period, driven by double-digital like-for-like sales growth in leather goods and outerwear outside mainland China.

Burberry said sales in China “had been encouraging since our stores reopened in June” and it would target 20% margins and high single-digit revenue growth in the medium term.

Chief executive officer Jonathan Ackeroyd said: “Our performance in the quarter continued to be impacted by lockdowns in mainland China but I was pleased to see our more localised approach drive recovery in EMEIA, where spending by local clients was above pre-pandemic levels. 

“Our focus categories, leather goods and outerwear, continued to perform well outside of mainland China and our programme of brand activations boosted customer engagement. While the current macroeconomic environment creates some near-term uncertainty, we are confident we can build on our platform for growth.”

  • Get the latest fashion retail news and analysis straight to your inbox – sign up for our weekly newsletter

Topics

Related Companies