Burberry revenues hit by China lockdowns

Burberry has revealed its Q1 global comparable store sales increased just 1%, from £479m to £505m, after being impacted by lockdowns in mainland China.

Excluding Mainland China, comparable store sales grew 16%, while EMEIA comparable store sales grew 47%. The brand reported double-digit comparable growth in leather goods and outerwear outside Mainland China

It has said it continues to target high-single digit revenue growth and 20% margins in the medium term. Based on the effective FX rates as of 11 July, it now expects a currency tail wind of £190m on revenue and £90m adjusted operating profit in FY23.

Jonathan Akeroyd, chief executive officer, said: “Our performance in the quarter continued to be impacted by lockdowns in Mainland China but I was pleased to see our more localised approach drive recovery in EMEIA, where spending by local clients was above pre-pandemic levels.

“Our focus categories, leather goods and outerwear continued to perform well outside of Mainland China and our programme of brand activations boosted customer engagement. While the current macro-economic environment creates some near-term uncertainty, we are confident we can build on our platform for growth.”