Burberry’s Q1 comparable sales up 18 percent, maintains outlook

Burberry’s first quarter comparable store sales increased 18 percent, while retail revenue increased 17 percent reported and 19 percent at currency FX to 589 million pounds.

Burberry witnessed strong recovery in Mainland China with 46 percent sales growth.

Group revenues excluding Mainland China rose 11 percent; EMEIA, 17 percent, South Asia Pacific 39 percent, Japan 44 percent; South Korea 6 percent, while revenues in the Americas declined 8 percent.

“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,” said Jonathan Akeroyd, Burberry’s chief executive officer commenting on the first quarter trading.

Burberry reports strong Q1

The company’s core categories of outerwear and leather goods performed well with outerwear comparable store sales up 36 percent, led by heritage rainwear and leather goods comparable store sales up 13 percent.

Burberry reopened its flagship store on New Bond Street, London, and 19 stores were refurbished/opened in the quarter.

The company commenced a further share buy-back with the full 400 million pounds expected to be completed by the end of the calendar year.

Burberry maintains current year outlook

Burberry maintained its current year guidance of high single-digit revenue CAGR from FY20 base equating to a low double-digit growth in FY24 and around 20 percent adjusted operating margin at FY20 CER.

Based on foreign exchange rates effective as of 29 June 2023, the company expects a currency headwind of 150 million pounds to revenue and 70 million pounds to adjusted operating profit. Burberry also maintained the medium-term target of 4 billion pounds revenue.

“While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance,” added Akeroyd.