Burberry smashes expectations, as the luxury brand appears to dodge cost of living concerns in Europe and weathers the ongoing pandemic-related restrictions in its largest market, China.
Group revenues climbed by 11 per cent to £1.35bn in the half year, beating projections of £1.32bn, while operating profit increased 27 per cent to £263m from the previous year, ahead of expectations of £230m.
EMEA store sales rose by 34 per cent compared to the previous year, when COVID lockdowns ahead of Christmas impacted sales.
Director at Edison Group Russell Pointon said the figures show the resilience of luxury consumers.
“Historical trends demonstrate that luxury brands are less likely to suffer from low consumer confidence, and the premium brand looks set to weather some of the most pressing cost-of-living challenges as its customer base will retain most of its spending power,” he said.
Sales are still by four per cent in Asia, despite a slight easing of measures, and the US market is down three per cent.
However, US sales are ahead by over 30 per cent compared to pre-pandemic levels, which Richard Hunter, Head of Markets at interactive investor, said shows “Burberry’s increasing encroachment”