On Wednesday Burberry said in the three months to 27 December store sales grew by 3% and the luxury goods retailer said that all sectors of the business was either flat or positive for the second consecutive quarter.
The group said stronger sales from China strengthened to 6% and the company expects adjusted operating profits will be in line with City predictions.
Chief executive Joshua Schulman said: “Our customers responded to our immersive Timeless British Luxury campaigns and experiences while the continued strength in our core outerwear category is now extending into accessories and ready-to-wear.
“As we move into 170 years of Burberry, these results reaffirm the enduring strength of our iconic brand and give us confidence in the path ahead.”
Robinhood UK lead analyst Dan Lane said, “China has become such a key market for Burberry that today’s lift in sales in the region will no doubt give management a bit more confidence that the Burberry Forward strategy is kicking in.
“The turnaround work so far has only got Burberry back to base camp though. The real climb begins now.
“Back to British isn’t a new angle but it’s the revisited idea of that Britishness that’s refreshing the whole brand perception. Greasy spoons and chippies over country estates reflects a modern celebration of heritage. Will elevating the everyday work? Well, given they’ve had a go at haute couture and streetwear to no avail, it couldn’t hurt.
“The biggest hurdle now is likely out of the board room’s control though. Europe’s luxury clothiers have already started to feel the heat from the latest round of tariff threats. Escalating tensions and the rise of China’s Gen Z consumers turning towards homegrown marques both have the capacity to stop the turnaround in its tracks. That’s why getting a fresh Burberry in front of key customer groups is so important – the scarf bar rollout is a good example here but for a bigger sales boost the world needs to see more.”
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