Burberry's strong US sales offset Iran war impact in Europe
Burberry's Financial Performance and Strategic Focus
(This story has been refiled to remove an incorrect image)
By Helen Reid
Quarterly Sales Overview
LONDON, July 17 (Reuters) - Burberry's recovery continued in the April-June quarter thanks to strong sales in the U.S. and China, while it said conflict in the Middle East dented tourist spending in Europe.
Leadership and Market Strategy
CEO Joshua Schulman, who has led a turnaround since taking the helm two years ago, is focused on the two "must-win" markets of the U.S. and China as he tries to revive the luxury brand.
Focus on the U.S. and China
It's not the only luxury group to have honed in on the U.S., and its newly-minted millionaires from the AI boom, as the sector tries to revive growth after a two-year slump.
For Burberry, the strategy appeared to be working, with sales in the Americas up 12% from a year earlier during the quarter thanks to new customers, and Gen Z shoppers helping boost China sales by 9%, the British group said on Friday.
"We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead," Schulman said in a statement.
Regional Sales Performance
Overall comparable store sales in Burberry's first financial quarter grew 5%, in line with analysts' expectations, while sales in the Europe and Middle East region fell 3%.
Product Expansion and Brand Initiatives
Though Burberry's strategy focuses on core products like trench coats, jackets and scarves, Schulman has also tried to expand the brand's presence in spring and summer clothing, launching a swimwear collection and hosting "takeovers" of hotels in France, Greece, and Bangkok this summer.
Financial Results
Burberry's first-quarter revenue - which is typically the smallest of the year - rose to £455 million ($612.88 million) from £433 million a year earlier.
($1 = 0.7424 pounds)
(Reporting by Helen Reid and Yamini Kalia; Editing by Susan Fenton)
