China boosts Burberry in first quarter

The British fashion house made a splash on the Chinese market in its first quarter ended July 1. Its move upmarket is also bearing fruit as it prepares to offer the first creations by its new artistic director, Daniel Lee, in the autumn.

 

Burberry was buoyed by the post-covid rebound in China, in the first quarter of its financial year ended July 1. But the US market and currency effects are thorns in its side.

 

Nevertheless, the year got off to a good start for the British House, with overall sales up 18% to £589 million (€688.2 million) on a same-store basis.

 

This was due in no small part to a surge in sales in China (+46%), but also to good performances in its “main outerwear and leather goods categories“, CEO Jonathan Akeroyd was delighted to report in a press release on July 14.

 

First products signed Daniel Lee

 

 

However, there are two downsides: the US market, where sales fell by 8%, and forecasts for currency effects. Burberry has updated its forecasts for the latter, and now expects a negative effect of around £150 million (€175 million) on sales and £70 million (€81.5 million) on adjusted operating profit.

 

Confident

 

Despite an “uncertain macroeconomic environment“, Jonathan Akeroyd is “confident” and expects further sales growth for the group in the coming months.

 

Burberry has thus confirmed low double-digit sales growth for the 2023-2024 financial year and an adjusted operating margin of around 20%.

 

 

Read also > Barbie creator Mattel opposes Burberry’s BRBY branding project as confusing

 

Featured photo : © Burberry / DR

Picture of Sophie Michentef
Sophie Michentef
Sophie Michentef has worked for more than 30 years in the professional press. For fifteen years, she managed the French and international editorial staff of the Journal du Textile. She now puts her press, textile, fashion, and luxury expertise at the service of newspapers, professional organizations, and companies.

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