BURBY - Burberry touts resilient luxury demand eyes growth in China amid reopening

Burberry ( OTCPK:BURBY ) stock notched a strong gain on Wednesday after posting positive yearly sales growth despite continued COVID drags in China.

Retail revenue for the group rose to $756M in the third quarter, up from $724M in the prior year quarter. The company noted that sales grew 11% in the period ex-China, which weighed on results with a 23% lockdown-driven decline. Comparable store sales also rose 1% from the prior year period across regions.

“Overall, we are pleased with our performance in the third quarter as double-digit revenue growth outside of Mainland China offset the impact of COVID-19-related disruption there,” CEO Jonathan Akeroyd commented. “Europe in particular continued to perform well, driven by strong trading over the festive period, and leather goods delivered another quarter of double-digit growth globally. We remain confident in our ability to reach our medium-term targets, despite the current macroeconomic environment.”

Toward those targets, CFO Julie Brown said that China sales have already rebounded early in 2023 as many pandemic restrictions have been removed. In particular, shoppers are returning to Macau and Hong Kong, according to Brown.

London-listed shares of the fashion group rose 2.81% into the afternoon session.

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