Trench coats and Chinese post-Covid rebound boost Burberry sales

Luxury fashion brand Burberry has seen its sales spike in recent months after a post-Covid rebound in shoppers in China and strong demand for its classic trench coat. The British firm saw revenues jump by 18% between April and June, compared to the same period last year. It was driven by a 46% surge in mainland China, Burberry’s largest market, as shoppers returned to stores after Covid lockdown measures the previous year. Ongoing social restrictions in the vital nation had weighed on the retailer’s sales, but China began significantly easing its zero-Covid policy at the start of this year. Sales in Japan also jumped by 44% and in South Asia Pacific by 39% over the period. It more than offset a decline in the Americas. Tourists shopping in Europe, the Middle East, India and Africa helped push up revenues in the region. Burberry said it enjoyed strong demand for its heritage raincoats, helping to drive up sales of outerwear by 36% year-on-year. Leather bags also sold well, particularly the vintage check bags and Frances bag. Burberry backed its full-year guidance, but said it could see a hit of about £70 million to adjusted operating profits based on current exchange rates. The brand, which has celebrity fans including Stormzy and actor Jodie Comer , reopened its flagship store on New Bond Street in London after closing for refurbishment. It now offers an immersive shopping experience revamped store, including a ‘luxury’ setting and a new VIP area. We saw continued strength in our core outerwear and leather goods categories and are excited about Daniel (Lee)’s product arriving in stores in September Jonathan Akeroyd, Burberry’s chief executive The company hired creative director Daniel Lee in September, who has been designing new ranges for the British brand. Jonathan Akeroyd, Burberry’s chief executive, said: ‘We have made good progress in the quarter delivering high teens comparable revenue growth led by the ongoing recovery in mainland China. ‘We saw continued strength in our core outerwear and leather goods categories and are excited about Daniel’s product arriving in stores in September. ‘While mindful of the uncertain macroeconomic environment, we are confident of achieving our full-year 2024 and medium-term guidance.’ Burberry has a medium-term target of £4 billion in revenue.