Burberry says outlook depends on China recovery from Covid lockdowns

UK luxury retailer Burberry on Wednesday said its full-year outlook hinged on how fast China bounced back from Covid-19 lockdowns, as 2022 fiscal-year profits and revenues rose.

The company on Wednesday reported a 23% increase in revenue to £2.83bn, while adjusted operating profit rose 38% to £523m, ahead of guidance. On a pre-tax basis profit rose 4% to £511m.

Adjusted gross margin rose 60 basis points to 70.6% despite pressures from Brexit duties and supply chain inflation, it added.

Burberry maintained medium-term guidance of high single-digit revenue growth.

"Our outlook is dependent on the impact of COVID-19 and rate of recovery in consumer spending in Mainland China," the company said.

"While the current macro-economic environment creates some near-term uncertainty, we are actively managing the headwind from inflation."