British luxury brand Burberry has unveiled its financial results for the first three months of the 2023-24 fiscal year, revealing remarkable performance in the Chinese market.
The company reported a staggering 46% year-on-year increase in mainland China’s store sales, contributing to an overall 18% growth in comparable store sales for the group. This exceptional surge appears to be connected to the reopening and subsequent gradual recovery from post-pandemic mainland China.
Burberry’s Chief Financial Officer, Jonathan Akeroyd, expressed his satisfaction with the quarter’s progress, emphasising the continued strength in mainland China. He acknowledged the significant role played by Chinese customers, both domestically and abroad, in driving outstanding performance in the South Asia Pacific region and Japan, with growth rates of 39% and 44% respectively. This surge has instilled confidence in the company’s ability to meet its fiscal year 2024 targets, despite the prevailing uncertain macroeconomic environment.
Specifically, the Asia-Pacific region witnessed an astounding 36% year-on-year growth, propelled by the exceptional performance in mainland China. The strong recovery and double-digit growth from Chinese customers reflect their increasing affinity for Burberry’s offerings.
Burberry’s commitment to the Chinese market is evident in its continued investments and focus on delivering an enhanced customer experience. The company’s strategic decision to renovate and reopen stores in key Chinese cities appears to be paying off, as evidenced by the significant sales growth. Moreover, the upcoming launch of Daniel Lee’s collection in September is expected to further capitalize on the strong demand and enthusiasm among Chinese consumers.
Looking ahead, Burberry remains optimistic about the Chinese market’s potential and maintains its full-year performance forecast for fiscal year 2024. The company expects low double-digit growth in sales revenue compared to the fiscal year 2020, and it strives to achieve an operating profit margin of around 20% based on constant exchange rates. With a long-term target of 5.2 billion USD in sales revenue, Burberry is poised to further solidify its position as a leading luxury brand in China and beyond.