Burberry sales jump after boost from China relaxing pandemic restrictions
Jonathan Akeroyd, chief executive officer of Burberry, said he was ‘very pleased’ by recent trading.
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Your support makes all the difference.Burberry sales have jumped after it was boosted by a rebound in shoppers in China following the relaxation of pandemic curbs.
The British luxury brand saw profits jump by a fifth for the year as a result.
Jonathan Akeroyd, chief executive officer of Burberry, said he was “very pleased” by recent trading.
The company told investors on Thursday that revenues grew by 10% to £3.1 billion over the year to April 1, compared to the previous year.
Like-for-like store sales increased by 7% as it saw more shoppers return to physical stores.
The fashion firm said like-for-like store sales grew by 16% in the final quarter of the year, surpassing expectations.
This was buoyed by a 13% jump in China – its largest market – after pandemic restrictions were eased further.
Meanwhile, operating profits grew by 21% to £657 million for the year.
Mr Akeroyd, who was drafted in as boss last year, said: “We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in mainland China.
“While the external environment remains uncertain, I am confident we can achieve our full-year 2024 and medium-term targets as we focus on executing our plan to realise Burberry’s potential as the modern British luxury brand.”
Nevertheless, the company held firm on its medium-term revenue targets, highlighting that it was “mindful” of the global economic backdrop.
Shares in the business dropped by around 6% in early trading.
Russ Mould, investment director at AJ Bell, said: “The fact Burberry hasn’t lifted its guidance for the new financial year after reporting such a strong set of results, and reference to it being ‘mindful’ of the macroeconomic and geopolitical environment, appear to have been the trigger for some investors to take profits in the stock.
“Investors want companies to consistently beat expectations and if they can’t do that, they will look elsewhere in the current market.”