Despite significant disruption from lockdowns in Mainland China, comparable store sales of Burberry advanced 1 per cent in the first quarter. Growth was strongest in EMEIA, where a more localised approach drove an increase in spending by clients in home markets. This approach has helped to mostly offset lower sales to Asian and especially Chinese tourists.
The company has seen strong recovery in the first quarter outside of Mainland China with comparable store sales up 16 per cent. This was offset by a 35 per cent decline in Mainland China due to restrictions and store closures put in place to control COVID-19 outbreaks. Overall, comparable store sales advanced 1 per cent in the period with a significantly different performance in each region, Burberry said in a press release.
Asia Pacific fell 16 per cent with Mainland China down 35 per cent. Burberry started the quarter with around 40 per cent of the distribution disrupted by lockdowns in Mainland China, including our digital hub. Disruption continued for the first two months but all stores were fully reopened by the end of the period. Declines in Mainland China were partially offset by strong performances in the recovering markets of Japan and SAP.
EMEIA grew 47 per cent as the business annualised the lockdowns in the first quarter of fiscal 2022. Sales to local clients were strong at above pre-pandemic levels, and sales to American tourists rebounded. Americas decreased 4 per cent slowing against very tough comparatives. It saw good growth in outerwear with bags also outperforming.
During the quarter, the company continued to invest in brand and product, generating a high level of engagement on social media as well as driving traffic to the website and adding almost half a million new profiles to our global customer database.
The new product launches and seasonal collections performed strongly. Leather goods comparable sales grew 21 per cent outside of Mainland China, led by the Lola handbag range. The TB family also performed well, supported by the Frances shape from the same family. Outerwear comparable sales advanced 19 per cent outside of Mainland China, driven by rainwear and jackets.
“Our performance in the quarter continued to be impacted by lockdowns in Mainland China but I was pleased to see our more localised approach drive recovery in EMEIA, where spending by local clients were above pre-pandemic levels. Our focus categories, leather goods and outerwear continued to perform well outside of Mainland China and our programme of brand activations boosted customer engagement. While the current macro-economic environment creates some near-term uncertainty, we are confident we can build on our platform for growth,” Jonathan Akeroyd, chief executive officer, said.
Fibre2Fashion News Desk (RR)