British luxury fashion house Burberry announced a 10 percent revenue uptick to GBP 3.094 billion (USD 3.85 billion) for the full-year 2023, on the back on a strong fourth-quarter and recovering mainland China.
SEE ALSO: Burberry APAC sales down 7 percent on Mainland China woes
By market, Asia Pacific experienced “volatile growth” in the year, due to Covid-19 related disruption in Mainland China in the first and third quarters, resulting in weighed growth of 2 percent.
Mainland China comparable store sales fell 11 percent in the year, with comparable store sales plummeting 35 percent and 23 percent, respectively, in the first and third quarters. The declined was only partially offset by second quarter comparable store sales, down 1 percent, and the start of recovery in the fourth quarter, that saw 13 percent comparable store sales growth.
Elsewhere, South Korea grew 7 percent in both the year and fourth quarter, benefiting from over 50 percent of the full price network updated by the year end.
Japan also saw strong comparable store sales growth up 27 percent in the year and 30 percent in the last quarter, South Asia Pacific rose over 35 percent in the year with a strong performance in the final quarter, up more than 50 percent, boosted by returning Chinese tourists, said the London-based company.
“I am very pleased with what we have achieved this year. 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,” said Jonathan Akeroyd, chief executive officer, Burberry.
“Having appointed Daniel Lee as our new chief creative officer, we have refocused our brand aesthetic and brought his new creative vision to life with a campaign and runway show that have been very well received. At the same time, we have reorganised our supply chain, merchandising and digital teams under new leaders to drive our strategy forward.”
Looking ahead, Burberry sad that while the external environment remains
“uncertain,” it is am “confident” it can achieve its full-year 2024 and medium-term targets.
It expects high single-digit revenue CAGR’ from its full-year 2020 base and around a 20 percent adjusted operating profit margin at constant exchange rates for 2024. But it’s planning for a currency headwind of around GBP 70 million on revenue and around GBP 40 million on adjusted operating profit in 2024.