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Burberry’s Sales Growth Slows to 1% on China COVID Hit

Burberry’s Sales Growth Slows to 1% on China COVID Hit

Wednesday, 18 January, 2023 - 07:45
A Burberry store is seen in London, Britain, January 16, 2023. (Reuters)

British luxury brand Burberry's like-for-like sales growth slowed sharply to 1% in the quarter to end-December as COVID-19-related disruption in mainland China largely offset a stronger performance in Europe.

Analysts were expecting a 2% rise, according to a company-supplied consensus. It had reported growth of 11% for the previous quarter.

The company, known for its black, red and camel check, said it was pleased with its performance overall, and it remained confident it could achieve its medium-term targets despite the tougher macro-economic environment.

"Europe in particular continued to perform well, driven by strong trading over the festive period, and leather goods delivered another quarter of double-digit growth globally," Chief Executive Jonathan Akeroyd said on Wednesday.

Burberry's like-for-like sales in Europe, Middle East, India and Africa grew 19%, it said, but in other regions they fell.

Mainland China, Burberry's biggest market, was down 23%, while the rest of Asia fell 7% and the Americas were down 1%.

Burberry's new chief designer Daniel Lee, who was previously creative director at Bottega Veneta, will present his first runway collection for the house next month at London Fashion Week.

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