The Burberry Group plc (LON: BRBY) stock price edged 2.46% lower after releasing its first quarter update. The report showed that the group’s sales, excluding mainland China were up 11%, with the company registering growth in almost all the regions it operates in.
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The group recorded a 17% revenue increase in the EMEIA region, followed by a 39% surge in the South Asia Pacific region, then a 44% expansion in Japan, and a 6% increase in South Korea. However, the Americas region recorded an 8% decline during the same period.
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Furthermore, mainland China registered the most growth at 46% as buyers embraced the company’s luxury products. Burberry noted that most of the above growth was derived from its core outerwear and leather goods categories.
The company singled out the outerwear comparable store sales that were up 36%, led by heritage rainwear, while the leather goods category registered 13% sales growth. Other milestones achieved by the firm include reopening its flagship store on New Bond Street, London, which offers an immersive shopping experience across all categories.
The company went further and refurbished/opened 19 stores during the quarter. The luxury goods company also launched a compelling programme of brand and product activations driving customer engagement, including launching a summer capsule.
The firm also unveiled the expansion of the Burberry Inspire community programme to support 500,000 young people over the next three years. The programme will help the participants unlock their creativity and drive positive change.
Investors will also be happy to note that the company commenced a further share buy-back and plans to complete a total £400 million buyback by the end of the calendar year.
Jonathan Akeroyd, Burberry’s CEO, 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 FY24 and medium-term guidance.”
*This is not investment advice.
Burberry share price.
The Burberry share price edged 2.46% lower to trade at 2065.5p, from Thursday’s closing price of 2117.5p.
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