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Burberry’s same-store sales increase only slightly due to China’s COVID-19 restrictions

Burberry Group PLC said on Friday comparable sales rose only slightly in the first quarter of fiscal 2023 as they were significantly impacted by the effects of Covid-19 restrictions in China.

The British luxury goods company BRBY,
-3.76%
said comparable sales rose 1% in the three months to July 2, with retail revenue rising to 505 million pounds ($597.2 million) from 479 million pounds for the period. the previous year.

The FTSE 100-listed company said comparable sales rose 16% excluding China.

The Asian giant’s sales fell 35% as 40% of its distribution was disrupted by lockdowns in mainland China, Burberry said. Meanwhile, sales in the Europe, Middle East, India and Africa region increased by 47% thanks to the high spending budget of its local customers.

In the Americas region, sales fell 4% against very difficult comparatives, he added.

Burberry said it expects a currency tailwind of around £190m on revenue and around £90m on adjusted operating profit for the 2023 financial year.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

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Post expires at 2:10pm on Thursday July 21st, 2022