Luxury fashion brand Burberry Group has reported a significant increase in its first-quarter sales, driven by a strong recovery in mainland China. The company’s comparable store sales rose by 18% compared to the same period last year, with retail revenue reaching £589 million ($773.8 million). This growth was primarily attributed to a 46% increase in sales in mainland China, which saw a rebound following pandemic-related lockdowns.
Analysts had anticipated an 18% increase in group retail sales, based on a consensus of 16 analyst estimates compiled by the company. Burberry reiterated its fiscal 2024 guidance, which includes low double-digit revenue growth and an adjusted operating profit margin of around 20%, both at current-exchange rates. The company has also updated its currency-exchange headwind forecast, now expecting a negative impact of approximately £150 million on revenue and £70 million on adjusted operating profit.
Despite the challenges presented by the pandemic, Burberry remains confident in its medium-term outlook and has maintained its target of achieving £4 billion in revenue. These positive results reflect the company’s successful strategy in navigating the changing retail landscape and capitalizing on opportunities in key markets.