Strong demand for trench coats boosts Burberry's sales with support from Yorkshire operations

It was driven by a 46 per cent surge in mainland China, Burberry’s largest market, as shoppers returned to stores after Covid lockdown measures were lifted.

Ongoing social restrictions in China had weighed on the retailer’s sales, but the Chinese government began to significantly ease its zero-Covid policy at the start of this year.

Sales in Japan also jumped by 44 per cent and in South Asia Pacific by 39 per cent over the period. It more than offset a decline in the Americas.

Tourists shopping in Europe, the Middle East, India and Africa helped push up revenues in the region.

Burberry said it enjoyed strong demand for its heritage raincoats, helping to drive up sales of outerwear by 36 per cent year-on-year.

Leather bags also sold well, particularly the vintage check bags and Frances bag.

Burberry backed its full-year guidance, but said it could see a hit of about £70m to adjusted operating profits based on current exchange rates.

The brand, which has celebrity fans including Stormzy and actress Jodie Comer, reopened its flagship store on New Bond Street in London after closing for refurbishment.

It now offers an immersive shopping experience revamped store, including a “luxury” setting and a new VIP area.

The company hired creative director Daniel Lee in September, who has been designing new ranges for the British brand.

Jonathan Akeroyd, Burberry’s chief executive, said: “We have made good progress in the quarter delivering high teens comparable revenue growth led by the ongoing recovery in mainland China.

“We saw continued strength in our core outerwear and leather goods categories and are excited about Daniel’s product arriving in stores in September.

“While mindful of the uncertain macroeconomic environment, we are confident of achieving our full-year 2024 and medium-term guidance.”

Burberry has a medium-term target of £4bn in revenue.

Richard Hunter, Head of Markets at interactive investor, commented: “Burberry’s strong momentum has carried over to its new financial year, with the economic reopening in China and the established return of the tourist providing a twin boost.

"By product, outerwear and leather goods continue to be star performers within the brand, with sales up by 36 per cent and 13 per cent respectively in the period.

"While this provides some vindication to the group’s decision to eschew discounted products in favour of full-price sales, comparable numbers will become harder to emulate, which will mean that Burberry’s focus will need to remain laser sharp.

Mr Hunter added: “Indeed, there are few signs of any distractions as the group continues its intense charm offensive. Its innovative approach to marketing continues to keep the brand front of mind, boosted by a social media presence which involves many high-profile ambassadors and, for example, 20.8m views on TikTok.”