Burberry delivers a strong first quarter

The luxury group posted an 18% growth in comparable store sales in the first quarter of fiscal 2024, as compared to the same period of last year, driven by the ongoing recovery in Mainland China

“We have made good progress in the quarter delivering high teens comparable revenue growth 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’s product arriving in stores in September. While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance”, commented Jonathan Akeroyd, Chief Executive Officer of Burberry.

First Quarter Results

In the first quarter of fiscal 2024, Burberry posted a comparable store sales increase of 18% from the same period in the previous fiscal year. Overall, the company’s retail revenue rose by 17% or 19% in current exchange rates, reaching 589 million British pounds (approximately 685 million euros), on a comparable basis to fiscal 2023.

The British label highlighted the recovery experienced in Mainland China following the lifting of COVID-19-related restrictions, which saw its comparable sales grow by 46% year-over-year in the three months to the 1^stof July. The EMEIA, South Asia Pacific, and Japan regions also recorded double-digit growths of 17%, 39% and 44%, respectively, as compared to the last fiscal year. These results were able to offset the 8% decline posted by the Americas region.

In addition, the brand’s core categories of outerwear and leather goods continued to perform well, with comparable store sales increases of 36% and 13%, respectively, on a comparable basis to the similar period of fiscal 2023.

Full Year Outlook

Therefore, Burberry reiterated at this latest trading update that it maintains its current yearly guidance “of high single-digit revenue CAGR from FY20 base equating to a low double-digit growth in FY24 and around 20% adjusted operating margin at FY20 CER”.

It added that in line with the foreign exchange rates effective as of the 29^th of June, it is anticipating a currency headwind of 150 million British pounds to revenue and 70 million British pounds to adjusted operating profit. But overall, it still expects to achieve its medium-term target of 4 billion British pounds (approximately 4.7 billion euros) in revenue.