Burberry Q1 Comparable Sales Up 18%; Says Confident Of Achieving FY24 & Medium-term Guidance

Burberry Group PLC (BRBY.L) reported that its comparable store sales increased 18% in the first quarter. The company benefitted from strong underlying growth in EMEIA, South Asia Pacific and Japan as well as the recovery in Mainland China from COVID-19 related lockdowns last year. Excluding Mainland China, comparable store sales grew 11%.

“While mindful of the uncertain macroeconomic environment, we are confident of achieving our FY24 and medium-term guidance,” said Jonathan Akeroyd, Chief Executive Officer.

Retail revenue for the 13 weeks ended 1 July 2023 increased 17% year-over-year to 589 million pounds, while it was up 19% at Constant exchange rates.

Quarterly comparable store sales in Asia Pacific increased 36% with Mainland China up 46%.

Quarterly comparable store sales in EMEIA region grew 17% driven by tourists.

Globally, the company saw good strength from the Mainland Chinese customer that grew mid-teens against fiscal year 2022 and helped drive a strong performance in South Asia Pacific 39% and contributed to the 44% increase in Japan. South Korea remained robust with growth of 6% broadly in line with last year, Burberry said in a statement.

Quarterly comparable store sales in Americas decreased 8%, broadly in line with prior quarter. Globally, the Americas customer decreased mid-single digit with the decline in locals partially offset by outbound tourist spend.

The company maintained its current year guidance of high single-digit revenue CAGR from fiscal year 2020 base equating to a low double-digit growth in fiscal year 2024 and around 20% adjusted operating margin at fiscal year 2020 CER.

Based on foreign exchange rates effective as of 29 June 2023, the company expects a currency headwind of about 150 million pounds to revenue and about 70 million pounds to adjusted operating profit. The company also maintained its medium-term target of 4 billion pounds revenue.

The company commenced a further share buy-back with the full 400 million pounds expected to be completed by end of the calendar year. It also announced expansion of Burberry Inspire community program to support 500,000 young people over next three years to unlock creativity and drive positive change.

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