Burberry sets outlook on Covid recovery in China

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British luxury brand Burberry said its outlook for the year ahead hinged on how quickly China, its biggest market, recovers from Covid-19 lockdowns, after meeting sales and profit expectations. operating for its 2022 financial year.

The company recorded a 23% increase in revenue to £2.83 billion and a 38% increase in adjusted operating profit to £523 million.

Same-store sales in its latest quarter rose 7% after shutdowns in mainland China weighed on its performance in March.

Burberry, known for its camel, red and black checks and TB monogram, lost chief executive Marco Gobbetti to Ferragamo in January.

His replacement, Jonathan Akeroyd, joined him in March, a few weeks before the end of his financial year.

Gobbetti has sought to elevate the Burberry brand into the luxury space as part of a multi-year transformation plan for the 166-year-old group.

Akeroyd said he would outline his plans to build on Gobbetti’s foundations and accelerate growth during November’s interim results.

Burberry said it maintained its mid-term guidance of high single-digit revenue growth and significant margin expansion at constant exchange rates.

“Our outlook depends on the impact of Covid-19 and the rate of recovery in mainland China consumer spending,” he said.

“While the current macro-economic environment creates some short-term uncertainty, we are actively managing the inflation headwind,” he added.

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