First-quarter sales shine at Burberry

Burberry Group reiterated its full-year guidance on Friday after a resurgent China helped lift first-quarter sales.

The luxury fashion brand said retail sales in the 13 weeks to 1 July rose 17% to £589m, or by 18% on a like-for-like basis. On a constant exchange rate basis, sales were 19% higher.

Within that, sales in mainland China surged 46%, as the country - one of the world’s biggest markets for luxury goods - continued to rebound from stringent Covid lockdowns last year.

Burberry also saw strong sales in South Asia Pacific, up 39%, and Japan, ahead 44%, while in Europe, the Middle East, India and Africa they sparked 17%. They fell 8% in the Americas, however.

Jonathan Akeroyd, chief executive, said: "We have made good progress in the quarter delivering high teens comparable revenue led by the ongoing recovery in mainland China. We saw continued strength in our core outerwear and leather goods categories, and are excited about Daniel [Lee’s] product arriving in stores in September.

"While mindful of the uncertain macroeconomic environment, we are confident of achieving our 2024 full-year and medium-term guidance."

Burberry - which appointed Lee chief creative officer last September - is forecasting a high single-digit revenue compound annual growth rate, equating to low double-digit growth in the 2024 full year and around 20% operating margin at 2020 constant exchange rates.

However, the blue chip expects to see a currency headwind of £150m to revenue and around £70m to adjusted operating profit based on current exchange rates.