By Laura McGuire
Designer Burberry reported revenues of £589m during the first quarter of the year, a 17 per cent lift compared to the same period last year, as the luxury brand was boosted by demand for its rainproof trench coats.
The British designer, best known for its tartan bags and scarfs, said outerwear comparable store sales were up 36 per cent, led by “heritage rainwear,” such as its trench coat which sell for upwards of £1,400.
Leather goods, such as handbags also rose 13 per cent with its Frances shapes and vintage Burberry Check line performing the best.
International sales in markets such as China also recovered well, as the country continues to recover from the pandemic, with sales up 46 per cent.
Burberry saw sales in Japan up 44 per cent and South Korea 6 per cent , however in the Americas it reported -8 per cent decline.
Despite a tough economic climate, the demand for designer goods appears to be strong, the luxury fashion house said that it expects a currency headwind of c.£150m to revenue and c.£70m to adjusted operating profit for 2024.
It also expects a medium-term target of £4bn revenue.
“This is a good start to the year for Burberry with strong sales growth, helped by an excellent recovery in China following last year’s COVID-19 related lockdowns,” Charlie Huggins, manager of the Quality Shares Portfolio at Wealth Club, said.
“Encouragingly, it isn’t just China driving the growth, with strength in South Asia Pacific, EMEIA and Japan also contributing. This suggests Burberry has seen a good early response to brand elevation efforts and new designs.”
He added: “The Americas however remained weak, with sales down 8 per cent suggesting Burberry has more to do in this region to catch up with European rivals.
“Looking to the medium to longer term, Burberry’s success will hinge on the success of new chief executive, Jonathan Akeroyd’s strategy to turn around the struggling luxury fashion house. This will take some time to judge, but the early signs are encouraging.”
