The British fashion house Burberry has released its financial results for the last quarter of 2022, revealing a stable performance despite being heavily impacted by the health crisis in China. The company saw a 1% increase in sales during this period, with an 11% increase in revenue outside of Mainland China.
However, the third quarter of Burberry’s 2023 fiscal year did not show significant growth. The company recorded a 1% increase in retail sales on a comparable basis, amounting to £756 million. These results were influenced by a 23% decrease in sales in Mainland China, as the health situation led to a decrease in foot traffic in stores and disruptions in store openings. Excluding Mainland China, Burberry experienced an 11% growth across all its markets.
The Asia-Pacific region, particularly affected by Mainland China, saw a 7% drop in sales. However, there were positive performances in countries such as South Korea, which saw a 10% increase, and Japan, which saw a 28% increase. Outside of this region, the Americas also experienced a 1% decrease in revenue. Burberry relied on “sustained trading during the holiday period” in the Europe, Middle East, and Africa (EMEIA) market, which achieved a 19% increase in sales driven by tourist flows.
Despite the mixed performance, Burberry announced that it is maintaining its forecasts for the 2023 fiscal year and aims to achieve an adjusted operating profit of £70 million by the end of March.
In addition to the financial results, Burberry highlighted its recent initiatives. The accessories category saw double-digit growth outside of Mainland China, thanks to several activations. The outerwear segment was supported by over 50 pop-ups worldwide and a partnership with Minecraft. These collaborations have positioned Burberry as a significant player in the intersection of luxury and the Web3, earning the brand the “Metaverse World and Gaming Experience Award” at the British Fashion Awards in December 2022.
Burberry also expressed excitement about the upcoming debut of Daniel Lee, the brand’s new creative director, at London Fashion Week in February. The introduction of Lee’s vision could enhance the brand’s appeal and potentially boost sales in the coming months.
Useful links:
– Burberry Official Website
– London Fashion Week Official Website
