First Quarter 2023 Results

Business Review

FY24 started well as comparable store sales advanced 18% in the first quarter. The Group benefitted from strong underlying growth in EMEIA, South Asia Pacific and Japan as well as the recovery in Mainland China from COVID-19 related lockdowns last year. 

During the quarter, we continued to invest in brand and product, with our new visual expression of Burberry driving the strong performance of outerwear, in particular heritage rainwear. Comparable store sales of leather goods also delivered double-digit growth, with women’s bags, especially the Frances shapes and vintage Burberry Check line performing well. We look forward to building on this when Daniel Lee’s debut runway collection launches in stores in September.

We continued to inspire and engage our younger consumer base with social media content iconising our brand codes. We achieved a record 20.8m views on TikTok, with a post featuring our new blue rose print.

In May, we introduced our new swimwear campaign ‘A Burberry Summer’, inspired by Burberry’s heritage of adventure. The collection features a range of summer ready-to-wear, including swimwear, as well as beach totes, all featuring the iconic Burberry Check. This was supported by dedicated window displays in over 80  100 stores in key locations, as well as 15 seasonal pop ups in Turkey, Italy and Thailand. 

In the same month, we attended the Met Gala, where we were joined by British and international talent including Jodie Comer and Stormzy wearing custom Burberry looks. We collaborated with director and choreographer Wayne McGregor to create the costumes for his latest work for The Royal Ballet, designed by Daniel. The new ballet production debuted with its world premiere in June and was performed at the Royal Opera House in London. Burberry also sponsored The National Gallery’s Summer Party for the second consecutive year.

During the quarter, we continued to elevate the customer experience, refurbishing a further 19 stores in the period, including our New Bond Street store in London, which reopened in June. An evolution of our store concept, the flagship is home to an immersive shopping experience, offering womenswear, menswear, eyewear, shoes, and accessories with a stronger focus on leather goods, and a new VIP area. We also opened a store in 5th Avenue, New York that temporarily replaces the 57th Street store whilst under refurbishment. We remain on track to refurbish over 50% of the store network by end of FY24 and to complete the roll out across the rest of the portfolio by FY26. 

At the same time, we maintained our support for our communities. In June, we awarded the annual Thomas Burberry Prize to artist Christine Wilkinson, building on our longstanding partnership with the Royal Academy of Arts. The award reflects Burberry’s continued commitment to supporting the next generation of British creatives in contemporary arts and culture. To build on this, we announced the launch of an RA Schools Scholarship Grant and Bursary. 

We also announced the expansion of our flagship community programme, Burberry Inspire. Designed in partnership between Burberry Group plc, The Burberry Foundation and International Youth Foundation (IYF), the initiative will support 500,000 young people over the next three years to unlock their creativity and drive positive change. We also announced a two-year partnership with The BRIT School to support fashion education and help young people from global majority backgrounds to enter the creative industry.  

Regional Comparable Sales Performance

Q1 FY24 comparable store sales were up 18% in the period. All regions outside of the Americas saw growth with Mainland China recovering from COVID-19 related lockdowns in the previous year. EMEIA, Japan and South Asia Pacific showed good double-digit growth more than offsetting declines in the Americas. 

• Asia Pacific increased 36% with Mainland China up 46%. Globally, we saw good strength from the Mainland Chinese nationality customer that grew mid-teens against FY22 and helped drive a strong performance in South Asia Pacific 39% and contributed to the 44% increase in Japan. South Korea remained robust with growth of 6% broadly in line with last year.
• EMEIA grew 17% driven by tourists.  
• Americas decreased 8%, broadly in line with Q4 FY23. Globally, the Americas customer decreased mid-single digit with the decline in locals partially offset by outbound tourist spend. 

Space contributed +1% in the quarter while FX was a headwind of 2%. In total, reported retail sales grew 17% year on year at reported rates. 

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