Burberry Reports Strong First-Quarter Sales, Led by China and Leather Goods

According to the trading statement released by the FTSE 100 group, sales in mainland China, its biggest market, were up 46% in the 13 weeks to July 1, reflecting the country's emergence from COVID-19 lockdowns last year.

The Americas, however, remained a weak spot.

Quarterly sales were down 8%, having dropped by 7% in the previous quarter.

"I think (demand from) the aspirational shopper has weakened a little ...

but we're picking up in the higher net worth individual cohort, and they're buying higher-priced products in leather goods and outerwear," interim finance chief Ian Brimicombe told reporters.

Despite the weakness in the Americas, Burberry reiterated its guidance of low double-digit revenue growth for its 2024 financial year.

The 167-year-old business, known for its trench coats, also reported that outerwear and leather goods were performing well and was excited about new products from designer Daniel Lee arriving in stores in September.

Lee, who joined in September, unveiled his debut collection at London Fashion Week in February.

Like-for-like leather goods sales increased 13%, with women's bags, especially the Frances shapes and vintage Burberry check performing well, the company said.

Burberry's efforts to push into the top end of the luxury market have been praised by Interactive Investor's Richard Hunter.

"Burberry is undergoing something of a quiet revolution at a time when other luxury brands, such as LVMH and Richemont, are consolidating their own leading positions," he said.

In summary, Burberry's first-quarter sales have jumped, driven by a strong performance in China and increased demand from U.S. and Middle East tourists in Europe.

However, the Americas continue to be a weak spot for the company.

Despite this, the brand remains optimistic, reiterating its