Burberry Group PLC (LSE:BRBY) has had its best quarter in years, and trench coats are leading the charge.
But a cautionary tone in the outlook statement took the gloss off a generally robust trading statement, sending the shares down 5% in early trade.
"We remain mindful of the uncertain geopolitical and macroeconomic environment and its potential impact on consumer confidence," investors were told.
In the quarter just gone, the British luxury house posted first-quarter retail revenue of £455 million for the 13 weeks to 27 June, up 5% on last year, with comparable sales also climbing 5%.
More importantly, it recorded growth across womenswear, menswear, accessories and childrenswear all at the same time - something that hasn't happened in three years.
Outerwear was the star of the show, delivering double-digit growth on the back of strong demand for heritage rainwear and lightweight jackets.
A "Portraits of an Icon" campaign helped bring in 19% more new rainwear customers, while women's handbags returned to growth and e-commerce sales jumped by a mid-teens percentage. Gen Z shoppers showed up in force, too, with that customer group growing by double digits during the quarter.
Geographically, the Americas led the way, with comparable sales up 12%, while Greater China grew 9%, driven in part by strong interest among younger shoppers. South Korea jumped 11%, though Japan slipped 2% as Chinese tourist numbers remained subdued.
Europe and the Middle East were softer, down 3%, reflecting ongoing conflict in the region and lower tourist spending.
Chief executive Joshua Schulman said the results showed the strategy was working. "For the first time in three years, we saw growth across our Womenswear, Menswear, Accessories and Childrenswear divisions," he said, adding that he was confident in the opportunities ahead.
Burberry also nudged up its first-half wholesale guidance to high single-digit growth after a positive response from partners, and said it still expects revenue growth and margin expansion for the full year - geopolitical uncertainty permitting.
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