UK fashion house Burberry’s comparable store sales rose 18% in first FY24

UK-based luxury fashion house Burberry Group Plc has released its trading update for the first quarter (Q1) of fiscal year 2024 (FY24), reporting an 18 percent year-on-year (YoY) increase in comparable store sales. The company posted growth across regions, particularly with a strong recovery in Mainland China where sales rose 46 percent year-on-year.

Excluding mainland China, group sales rose 11 percent. Burberry reported growth of 17 percent in the Europe, Middle East, India and Africa (EMEA) region, 39 percent in South Asia Pacific and 44 percent in Japan. However, the Americas had a less encouraging decline of 8 percent and South Korea had a relatively modest increase of 6 percent.

British luxury fashion house Burberry reported an 18 per cent rise in comparable store sales in Q1 FY24, driven by a 46 per cent rise in sales in mainland China. Sales of core categories, outerwear and leather goods grew by 36 per cent and 13 per cent respectively. The company’s retail revenue rose to £589 million in 1FY24, an increase of 17 per cent year-on-year.

Driven by the popularity of heritage rainwear, comparable store sales for outerwear grew by 36 per cent in Q1 FY24. Similarly, leather goods also grew, with comparable store sales up 13 percent year over year, the company said in a media release.

The Q1 FY24 period also included the re-opening of the company’s flagship store in London’s New Bond Street. The transformed retail space now offers an immersive shopping experience across all categories. Burberry renovated or opened 19 additional stores during the quarter.

Retail revenue for Q1 FY24 was £589 million, a significant increase from £505 million for the same period the previous year.

Burberry maintained its guidance for the current year, forecasting high single-digit revenue compound annual growth rate (CAGR) from the FY20 base. This is expected to equate to low double-digit growth in FY24.

“We made good progress in the quarter with high-teens comparable revenue growth led by the ongoing recovery in Mainland China. We’ve seen continued strength in our core outerwear and leather goods categories and are excited about Daniel’s products coming to stores in September. While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance,” said Jonathan Akerroyd, CEO.

Fibre2Fashion News Desk (DP)

Leave a Reply

Your email address will not be published.