Burberry Q1 performance impacted by China lockdowns
Luxury fashion brand Burberry has increased its first quarter comparable store sales by just 1% after trading was impacted by Covid-19 lockdowns in mainland China.
When sales in the country were excluded, there was an uplift 16%. In contrast, comparable store sales in Burberry’s EMEIA region rose by 47%.
Jonathan Akeroyd, chief executive of Burberry, 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.”
During the 13-week period ending 2 July, Burberry enjoyed double-digit growth in sales of leather goods and outerwear outside mainland China, with its Lola handbag range being particularly popular. The rainwear and jacket categories also performed well.
Looking ahead, Burberry said it is continuing to aim for high-single digit revenue growth and 20% margins in the medium term. It also revealed that its performance in mainland China has been encouraging since stores reopened in June.
Akeroyd added: “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 macro-economic environment creates some near-term uncertainty, we are confident we can build on our platform for growth.”