Younger shoppers send Burberry sales surging

Company said it continued to see strong growth in mainland China and Korea

‘We have made an excellent start to the new fiscal year,’ said departing Burberry boss Marco Gobbetti. Photograph: iStock

‘We have made an excellent start to the new fiscal year,’ said departing Burberry boss Marco Gobbetti. Photograph: iStock

 

Burberry, the British brand searching for a replacement for departing boss Marco Gobbetti, said its like-for-like sales had risen above pre-pandemic levels, driven by new younger customers and strong growth in trench coats and handbags.

The luxury group said on Friday retail revenue for the 13 weeks to June 26th rose 86 per cent to £479 million (€560 million), with comparable store sales rising 90 per cent on the same period last year and 1 per cent ahead of the period two years ago.

Gobbetti, who has sought to elevate Burberry in the luxury sector, is returning home to Italy to lead Ferragamo, the two companies said last month. The news sent Burberry’s shares tumbling 10 per cent.

“We have made an excellent start to the new fiscal year,” he said on Friday. “Full-price sales accelerated as our collections and campaigns attracted new, younger luxury customers to the brand.”

He said the label, which has been refreshed by a TB monogram introduced by designer Riccardo Tisci, was “firmly set on a path of growth and acceleration” and he was confident it would meet its medium-term target of high single-digit top-line growth.

The company said it continued to see strong growth in mainland China and Korea, helping comparable store sales in Asia Pacific rise 27 per cent year on year.

The Americas were a stand out, it said, with comparable sales up 341 per cent on a year ago and 34 per cent up on two years ago, driven by a new and younger clientele.

Europe, however, had not recovered, as stores were hit by continued lockdowns in some countries and weaker tourist footfall. Comparable store sales were 38 per cent lower than tow years ago, it said. – Reuters