Burberry has reported “an excellent start” to its financial year with a Q1 trading update on Friday showing it has “attracted new, younger luxury customers to the brand”.
It said it saw “strong growth across our strategic categories, in particular leather goods and outerwear, and exited markdowns in digital and mainline stores”.
Looking at the numbers, retail revenue in the quarter to late June rose to £479 million having been only £257 million a year ago.
Comparable store sales “rebounded strongly”, rising 90% vs a year ago and even up 1% on a two-year comparison (2YoY). And full-price sales accelerated to +26% 2YoY. Both full-price leather and outerwear more than doubled against last year’s Q1 and it saw triple-digit growth in shoes.
Digital full-price sales have also more than doubled 2YoY.
Importantly too, since the end of Q1, it has opened its first flagship carrying its new global design concept on Sloane Street, London. It described this as “a new customer experience in a uniquely British luxury setting” and said three more flagships are to follow over the next year.
It guidance for the current year remains unchanged except for one plus point and one negative. On the plus side, wholesale “is now expected to increase by approximately 60% YoY in H1 due to a stronger order book”. And the negative? Currency exchange issues are now expected to be a £114 million headwind on sales and £40 million headwind on adjusted operating profit for FY22 based on 25 June spot rates.
