Burberry aims to add 65 newly designed stores in FY23 to the 47 it rolled out last year. The brand continues to target high-single digit revenue growth and 20 per cent margins in the medium term. Despite significant disruption from lockdowns in Mainland China, its comparable store sales grew 1 per cent in Q1 FY23. The brand witnessed strongest growth in the EMEIA regions. Its focus categories, leather goods and outerwear, continued to perform well outside Mainland China. During the quarter, the brand continued to invest in brand and product, generating a high level of engagement on social media as well as driving traffic to its website and adding almost half a million new profiles to our global customer database.
In April, Burberry expanded its Lola handbag range and supported it with a series of pop-ups and pop-ins as well as a campaign, starring Bella Hadid, Lourdes Leon, Jourdan Dunn and Ella Richards. Alongside this, it also introduced a virtual collection on online gaming platform Roblox. In May, the brand launched its seasonal TB Summer Monogram collection with a new campaign starring Gisele Bündchen. It also launched a collection at Neiman Marcus, wrapping the exterior of its store in Atlanta in the TB Monogram and opening a pop-up inside.
Burberry’s new product launches and seasonal collections performed strongly during the quarter. Its Leather goods comparable sales by grew 21 per cent outside of Mainland China, led by the Lola handbag range. Outerwear comparable sales increased 19 per cent outside of Mainland China, driven by rainwear and jackets.
In June, Burberry again collaborated with Mythical Games to launch a new NFT collection in their flagship title, Blankos Block Party. Mostly recently, Burberry roped in the South Korean Premier League footballer Son Heung-min as its new brand ambassador.