Burberry Q1 sales impacted by Chinese lockdowns

Luxury fashion house Burberry said on Friday that first-quarter same-store sales increased just 1% year-on-year as sales were impacted by lockdowns across mainland China.

Burberry stated retail revenues for the 13 weeks ended 2 July came to £505.0m, up 5% at reported currency and unchanged at constant exchange rates. Excluding mainland China, comparable store sales grew 16%, while comparable store sales across Europe, the Middle East, India, and Africa grew 47% year-on-year.

The FTSE 100-listed company added that it continues to target high-single-digit revenue growth and 20% margins in the medium-term and also expects a full-year currency tailwind of roughly £190.0m on revenue and approximately £90.0m adjusted operating profit.

Chief executive Jonathan Akeroyd 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.

"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."

Reporting by Iain Gilbert at Sharecast.com