British luxury brand Burberry announced first-quarter comparable store sales increased 18 percent, on the back of a skyrocketing increase in mainland China, South Asia Pacific and Japan revenues in each respective market.
The London-headquartered fashion label said sales excluding mainland China increased 11 percent, while the company’s EMEIA region increased 17 percent.
South Asia Pacific sales surged 39 percent, Japan jumped 44 percent and South Korea grew 6 percent, according to the company. Burberry added it clocked a strong recovery in mainland China, with revenues skyrocketing 46 percent during the three months ending July 1.
The company’s Americas region dropped 8 percent during the quarter.
By category, Burberry said its core categories of outerwear and leather goods performed well, with outerwear comparable store sales up 36 percent, led by heritage rainwear. Leather goods comparable store sales were up 13 percent, it added.
“We have made good progress in the quarter delivering high teens comparable revenue growth led by the ongoing recovery in mainland China,” said Jonathan Akeroyd, chief executive officer at Burberry.
“We saw continued strength in our core outerwear and leather goods categories and are excited about Daniel’s [Burberry creative director] product arriving in stores in September. While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance.”
Looking ahead, Burberry said it maintains its current year guidance of high single-digit revenue CAGR from FY20 base equating to a low double-digit growth in FY24 and around 20 percent adjusted operating margin at FY20 CER.
Based on foreign exchange rates effective as of 29 June 2023, it said its expect a currency headwind of GBP 150 million to revenue and GBP 70 million to adjusted operating profit. It also maintains its medium-term target of GBP 4 billion revenue.
The earnings update comes after reported Burberry 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.