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Burberry Q1 sales hit by Mainland China lockdowns

By Huw Hughes

15 Jul 2022

Business

Image: Burberry

Burberry reported a 1 percent year-over-year increase in sales in the first quarter of the year as lockdowns in Mainland China continued to impact the business.

Excluding the impact of Mainland China, comparable store sales grew 16 percent.

The company performed best in EMEIA, with comparable store sales up 47 percent.

CEO Jonathan Akeroyd told investors: “Our performance in the quarter continued to be impacted by lockdowns in Mainland China but I was pleased to see our more localised approach drive recovery in EMEIA, where spending by local clients was above pre-pandemic levels.”

Key categories perform well

Burberry’s focus categories, leather goods and outerwear, saw double-digit comparable sales growth outside Mainland China, with good performances from rainwear and jackets, as well as from its Lola handbag range, supported by new shapes.

Akeroyd added: “While the current macro-economic environment creates some near-term uncertainty, we are confident we can build on our platform for growth.”

Looking ahead, the company said it continues to target high-single digital revenue growth and 20 percent margins in the medium term.

It said its performance in Mainland China has been “encouraging” since its stores reopened in June and it is “actively managing the headwind from inflation”.

BURBERRY