A strong appetite from Gen Z shoppers in China helped drive better-than-expected sales at Burberry over the key festive period. Shares in the London-based fashion house climbed higher on Wednesday as a result.
The company reported that retail revenues increased by 1% to £665 million for the 13 weeks to 27 December, compared to the same period a year earlier. This was largely driven by a 3% jump in comparable store sales, with a 6% growth in Greater China leading the way.
Burberry highlighted that it witnessed double-digit growth in Gen Z customers in Greater China and the Asia Pacific region, with growth among younger consumers across all markets. Sales of outerwear and scarves also increased during the quarter.
“During the festive quarter, we continued to build momentum with our Burberry Forward strategy, delivering sequential improvement in comparable sales growth and an improved quality of revenue across channels and geographies,” said Joshua Schulman, chief executive of Burberry.
“Our customers responded to our immersive, timeless, British, luxury campaigns and experiences, while the continued strength in our core outerwear category is now extending into accessories and ready-to-wear.”
Schulman added that the results “reaffirm the enduring strength of our iconic brand and give us confidence in the path ahead” as the company approaches its 170th year.
Shares in Burberry were 5.2% higher at 1,283p on Wednesday following the update.
