Burberry Group PLC (LSE:BRBY) reported a 5% increase in first-half revenues to £1.35bn as sales growth accelerated in the second quarter.
Second-quarter sales growth of 11% was up from the 1% posted in quarter one boosted by a pick-up in Asia, while in the 26 weeks to 1 October 2022, adjusted operating profit rose 6% to 238mln and diluted EPS jumped 37% to 48.9p.
For the six-month period, sales in Asia were down 4%, despite the growth in the second quarter, with COVID-related lockdowns in mainland China in quarter one impacting the overall result.
EMEIA comparable store sales grew 34% in the first half recovering strongly from the pandemic-related lockdowns last year, benefiting from strong tourist growth that more than doubled in the half.
Outerwear comparable store sales grew 18% in the first half excluding China and Leather Goods comparable store sales rose 11% in the first half including China.
Burberry maintained its near-term guidance for full-year 2024 despite the challenging macro environment and its potential impact on trading.
“We have established a new medium-term target to grow sales to £4bn at constant exchange rates, sustaining high-single digit growth with operating leverage ensuring good margin progression,” the group said.
Jonathan Akeroyd, chief executive officer, added: “I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand. I am excited about what we can achieve in pursuit of our long-term ambition to reach £5bn in revenue."