Burberry sales hit by China’s covid disruption
Burberry saw its like-for-like store sales edge up 1% in its third quarter after trading was hit by Covid-19 related disruption in mainland China.
Excluding mainland China, the luxury brand’s like-for-likes increased by 11% with the EMEIA region, Japan and South Korea all achieving double-digit growth. However, sales in Asia Pacific and the US fell by 7% and 1% respectively while mainland China sales dropped by 23%.
Subscribe to TRBBurberry said accessories continued to be a strong performing category, particularly the Lola handbag range. In addition, women’s ready-to-wear sales increased by a mid-teen percentage due to the popularity of dresses and knitwear featured in seasonal campaigns
Jonathan Akeroyd, Burberry chief executive, 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.”
Burberry continued to roll out its new store concept with 15 stores completed in the quarter, including Pacific Place in Hong Kong and North Park Centre Dallas in the US. It now has 84 shops in the new concept and said it is on track to complete 65 stores in the current financial year.
Akeroyd added: “We are focused on executing our plan to realise Burberry’s potential as the modern British luxury brand and we look forward to unveiling Daniel Lee’s debut collection for Burberry on our return to London Fashion Week next month.”
