China drives sales jump at Burberry

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1 年前

STORY: Sales are on the up at Burberry.

And it’s largely got China to thank.

The British luxury brand said Friday (July 14) that sales rose 18% in the first quarter.

In China, its biggest market, they were up by almost a half.

The surge in demand there reflected the country’s emergence from lockdowns.

Burberry says sales also rose strongly in Europe, thanks to spending by tourists from the U.S. and Middle East.

But the Americas were a problem.

Revenue there dropped for a second straight quarter.

Interim finance chief Ian Brimicombe said demand from aspirational shoppers had weakened.

He said London was a concern too, with tourists keener to go to continental Europe instead.

Burberry is pressing the UK government to offer a new sales tax scheme for visitors in response.

The 167-year old firm reiterated guidance for low double-digit revenue growth for its 2024 financial year.

Its shares were broadly flat in afternoon trade.