Dollar strength helps Burberry avoid China lockdowns

• Burberry reported that lockdowns in mainland China caused a 35% decline in sales.
• Analysts had projected a decrease of 2% in same-store sales for the British luxury goods firm.
• Full-year sales to be boosted by £190m due to stronger dollar and related currencies.

Burberry reported that lockdowns in mainland China caused a 35% decline in same-store sales during the first quarter, but a stronger dollar will deliver a greater boost to full-year sales.

Analysts had projected a decrease of 2% in same-store sales for the British luxury goods firm over the time, but same-store sales actually increased 1%.

Without China’s influence, sales would have been 16% higher.

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Burberry’s success in Europe and the Middle East was good, while its performance in the Americas was worse in comparison to other regions.

The company now anticipates the stronger dollar and related currencies to increase sales by £190 million, up from an earlier projection of £159 million. However, the profit impact will be slightly less than anticipated, at £90 million as opposed to £92 million.