Burberry sales rise despite pandemic disruption in China
Burberry has reported a 5% increase in revenue to £756 million for the third quarter ending 31 December 2022.
Comparable store sales grew 1%, despite “significant disruption” from both lockdowns and the reopening of Mainland China. Outside of Mainland China, comparable stores sales increased 11% with EMEIA, Japan, South Korea and South Asia Pacific all showing double-digit growth.
By product, accessories saw double-digit comparable sales outside of Mainland China. This was supported by a "dedicated campaign" and a 360-degree programme of commercial activations for the festive period. Men’s accessories reported “strong” double-digit comparable sales and outerwear saw high-single digit comparable growth.
The roll out of the group's new store concept continued with 15 stores completed in the quarter. Burberry said it remains on track to complete the change in 65 stores in FY23. The business is aiming to complete the roll out across its portfolio by FY26.
The group's commitment to sustainability was also recognised across ratings and benchmarks in the period. Burberry earned an ‘A’ rating in environmental non-profit CDP’s annual ‘A List’ for its efforts to tackle climate change.
Looking ahead, the group expects an estimated £160m currency tailwind on revenue and £70m on adjusted operating profit in the fiscal year 2023, based on foreign exchange rates recorded on 30 December 2022.
Jonathan Akeroyd, CEO of Burberry, 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.
“We remain confident in our ability to reach our medium-term targets, despite the current macro-economic environment. 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.”