Alexa Lockdowns in China limit Burberry’s first-quarter sales growth to 1%
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Lockdowns in China limit Burberry’s first-quarter sales growth to 1%


Lifestyle And Fashion

Lockdowns in China limit Burberry’s first-quarter sales growth to 1%

British luxury apparel brand Burberry said its first-quarter comparable store sales increased by 1%, limited by COVID-19 lockdowns in China, its biggest market.

The 157-year-old-seller of raincoats and leather goods said it made $503 million of retail revenue in the three months to June 30.

Outside mainland China, the firm reported a 16% rise in comparable store sales, with Europe up by 47%.

Know globally for its red, camel, red, and black check and TB monogram, Burberry, said its performance in China had been encouraging since its stores reopened in June. It was actively managing the headwind from inflation. Burberry highlighted “an uneven trading environment” and said sales of large leather goods and sales of outwear accounted for over half the growth while men’s accessories and tailoring outperformed.

Jonathan Akeroyd, Burberry Group’s Chief Executive, said the group’s performance in the quarter continued to be impacted by lockdowns in Mainland China. Still, he was pleased to see the group’s more localized approach drive recovery in Africa, Europe, India, and the Middle East, where spending by local clients was above pre-pandemic levels.

Comparable store sales in the Americas fell 4%, Burberry said, against a brutal comparative a year ago.

Burberry said its medium-term target of high-single-digit revenue growth and 20% margins was unchanged.


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