Burberry has achieved significant growth in the first quarter, with overall comparable sales increasing by as much as 18%. This impressive performance can be attributed to the rebounding Chinese market, emphasizing the importance of the Asian region for the company’s success. Sales in Mainland China saw a remarkable rise of 46%, indicating a strong recovery in the country. Other regions also showed positive results, with EMEIA experiencing a 17% increase, South Asia Pacific up by 39%, and Japan witnessing a 44% growth. Although South Korea only experienced a 6% rise, it still contributed to the overall growth. However, luxury businesses in the Americas faced challenges as sales declined by 8%. This decline aligns with the trend observed throughout the year. Burberry explained that the decrease in sales in the Americas was due to a decrease in local customers, partially offset by outbound tourist spend.
When comparing the current quarter to the same period last year, the 18% rise in comparable store sales becomes even more impressive considering that comp sales only grew by 1% in the 13 weeks leading up to July last year. Retail revenue also saw a substantial increase, rising by 17% to £589 million and up 19% on a currency-neutral basis.
Burberry attributes its strong performance to the success of its core categories, particularly outerwear and leather goods. Outerwear comparable store sales surged by 36%, driven by the popularity of heritage rainwear. Women’s bags, specifically the Frances shapes and vintage Burberry Check line, performed well, leading to a 13% increase in leather goods comp store sales. The company is excited about the launch of Daniel Lee’s debut runway collection in September and aims to capitalize on this success.
The sales success was further driven by a compelling brand and product activations program. Burberry launched its Summer capsule collection during the quarter, which received positive responses. The company’s new visual expression of Burberry played a significant role in driving performance, along with its efforts to engage with a younger consumer base through social media content. Particularly, Burberry achieved record-breaking views on TikTok, with a post featuring its new blue rose print reaching 20.8 million views.
Additionally, Burberry’s stores played a crucial role in its strong performance during the quarter. The company reopened 19 stores after refurbishment or newly opened them within the period. The flagship store on New Bond Street in London, which recently reopened after two years of works, is expected to have a significant impact on the current quarter. Furthermore, Burberry is refurbishing its 57th Street store in New York and has opened a temporary store on 5th Avenue while the revamp works continue.
Overall, Burberry’s impressive first-quarter performance can be attributed to the revival of the Chinese market and the success of its core categories. The company’s focus on brand activations, engaging with younger consumers, and enhancing the store experience have also contributed to its growth. With the upcoming launch of Daniel Lee’s collection and the ongoing refurbishments of its stores, Burberry is well-positioned to maintain its momentum in the luxury fashion market.
Useful links about Burberry’s first-quarter performance:
– [Burberry’s official website](https://www.burberry.com/)
– [Financial Times article on Burberry’s growth in China](https://www.ft.com/content/41d6d7f0-fe96-11e8-aebf-99e208d3e521)
