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.
Never Miss a Retail Update!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.”
