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Burberry boosts sales outside of mainland China, with Lola bags in demand

Burberry has released Q3 figures (Burberry)
Burberry has released Q3 figures (Burberry)

High demand from well-heeled shoppers for handbags and clothing at Christmas helped Burberry to notch up 11% comparable sales growth outside of mainland China.

The FTSE 100 firm, known for its trench coats, cheered a good performance in Europe during the third quarter to December 31, and saw improvements in the UK each month over the period.

The British fashion firm pointed to “strong growth” in its Lola accessories range, where prices start from £210 for a card holder to £2690 for a sequinned monogram leather bag. Women’s ready-to-wear was also popular.

However, Covid-19 related disruption in mainland China, including lockdowns, weighed on total group comparable store sales, which improved just 1%. That compared with a 7% rise a year earlier.

Chief executive Jonathan Akeroyd said: “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.”

He added: “We remain confident in our ability to reach our medium-term targets, despite the current macro-economic environment.”

Akeroyd joined the company last year and is aiming to increase annual revenues to £5 billion, with plans such as increasing sales of higher-margin handbags, shoes and other accessories. The most recent annual sales reached £2.8 billion.

Burberry is hoping the appointment last year of award-winning designer Daniel Lee will help achieve the group’s turnover target. The former creative director at Bottega Veneta will present his debut runway collection for Burberry at London Fashion Week next month.

The shares rose 28p, or 1.25%, to 2271p.