Burberry Group PLC (LSE:BRBY) saw its first-quarter sales jump by nearly a fifth as China’s re-opening helped drive revenue growth.
Comparable sales in the first quarter to 1 July, 2023, were up 18% to £589mln, the company said in a statement, driven by a strong recovery in Mainland China where sales jumped 46% as COVID-related lockdowns eased.
"We have made good progress in the quarter delivering high teens comparable revenue growth led by the ongoing recovery in Mainland China,” said Burberry’s CEO Jonathan Akeroyd.
Burberry also reopened its flagship store on New Bond Street as part of 19 stores refurbished or opened in the quarter.
The British fashion retailer also said it had commenced a further share buyback, with £400mln of shares to be purchased by the end of the calendar year.
Looking ahead, the FTSE 100 firm maintained current guidance of high single-digit compound annual growth rate (CAGR) from 2020.
Based on foreign exchange rates, Burberry expects a currency headwind of £150mln and a roughly £70mln headwind to adjusted operating profit.
“While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance,” Akeroyd noted.