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Luxury fashion house Burberry Group PLC on Wednesday said comparable store sales grew by just 1% in its financial third quarter, following significant lockdown disruption in China and the reopening of the nation.
Retail revenue in the 13 weeks to December 31 grew by 4.6% to £756 million from £723 million in the 13 weeks to December 25, 2021.
Comparable sales growth outside of China was 11%, while sales in Mainland China fell by 23%. Europe in particular continued to perform well, Burberry said, driven by strong trading over the festive period, with leather goods delivering another quarter of double-digit growth.
In Europe, Middle East, India & Africa, sales jumped 19%, while falling 7% in the Asia Pacific and 1% in the Americas. The company noted that Japan, South Korea and South Asia Pacific showed double-digit growth, with comparable sales climbing 28%, 10% and 15% respectively.
Chief Executive Jonathan Akeroyd said Burberry remains confident in its ability to reach its medium-term targets, despite the current macro-economic environment.
For financial year 2023 ending April 1, the company expects a currency tailwind of £160 million on revenue and £70 million on adjusted operating profit.
Regarding its ongoing £400 million share buy-back programme, Burberry said it had completed £363 million by the end of 2022.
The company will release its financial year 2023 results on May 18.
Burberry shares were 1.3% higher at 2,273.00 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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