Burberry sales jump after boost from China relaxing pandemic restrictions

Jonathan Akeroyd, chief executive officer of Burberry, said he was “very pleased” by recent trading.

The company told investors that revenues grew by 10 per cent to £3.1bn over the year to April 1, compared to the previous year.

Like-for-like store sales increased by seven per cent as it saw more shoppers return to physical stores.

The fashion firm said like-for-like store sales grew by 16 per cent in the final quarter of the year, surpassing expectations.

This was buoyed by a 13 per cent jump in China – its largest market – after pandemic restrictions were eased further.

Meanwhile, operating profits grew by 21 per cent to £657m for the year.

Mr Akeroyd, who was drafted in as boss last year, said: “We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in mainland China.

“While the external environment remains uncertain, I am confident we can achieve our full-year 2024 and medium-term targets as we focus on executing our plan to realise Burberry’s potential as the modern British luxury brand.”

Nevertheless, the company held firm on its medium-term revenue targets, highlighting that it was “mindful” of the global economic backdrop.

Shares in the business dropped by around six per cent in early trading.

Russ Mould, investment director at AJ Bell, said: “The fact Burberry hasn’t lifted its guidance for the new financial year after reporting such a strong set of results, and reference to it being ‘mindful’ of the macroeconomic and geopolitical environment, appear to have been the trigger for some investors to take profits in the stock.

“Investors want companies to consistently beat expectations and if they can’t do that, they will look elsewhere in the current market.”

The results follow creative director Daniel Lee's first collection at London Fashion week in February as well as the launch of a new logo and campaign.

Burberry was founded in West Yorkshire, and still has a strong presence in the region, including an office in Leeds.

Its gabardine fabric is woven in Keighley at the company’s own textile mill, while the Castleford factory, owned by Burberry since 1972, is where the trench coats have been made since the late 1960s.

The brand is partnering with LEEDS 2023, a year-long celebration of culture and community taking place in the city of Leeds and the wider West Yorkshire region.

As part of the partnership, Burberry will support a number of creative learning initiatives this summer, including Smeaton300, an events programme inspired by the legacy of East Leeds engineer and astronomer, John Smeaton.

The project aims to unite inventive minds across engineering, science, industry and the arts.