Burberry, the British luxury apparel brand, posted an 18% increase in first-quarter comparable store sales on Friday, matching market forecasts thanks to China’s sustained comeback.

Sales in its largest market, mainland China, increased 46% in the 13 weeks to July 1, reflecting the country’s exit from COVID-19 lockdowns last year.

According to the FTSE 100 group’s trading statement, revenues in Europe increased 17% due to demand from tourists from the United States and the Middle East.

The Americas, on the other hand, remained a weak point. Quarterly sales were down 8%, following a 7% dip the prior quarter.

“I think (demand from) the aspirational shopper has weakened a little … but we’re picking up in the higher net worth individual cohort, and they’re buying higher-priced products in leather goods and outerwear,” interim finance chief Ian Brimicombe told reporters.

Brimicombe stated that more tourists appeared to be returning to continental Europe rather than London, and that Burberry was requesting a new sales tax system from the British government in order to attract them.

The 167-year-old company, noted for its trench coats, has confirmed its sales growth target of low double digits for the fiscal year 2024.

Outerwear and leather items were performing well, according to CEO Jonathan Akeroyd, who is pleased about new products from designer Daniel Lee that will be available in stores in September.

Lee, who joined in September, debuted his debut collection in February at London Fashion Week.

According to the company, like-for-like leather goods sales grew 13%, with women’s bags, particularly the Frances designs and vintage Burberry check, performing well.

“Burberry is undergoing something of a quiet revolution at a time when other luxury brands, such as LVMH and Richemont, are consolidating their own leading positions,” Interactive Investor’s Richard Hunter said of the British brand’s efforts to push into the top end of the luxury market.

(Adapted from MarketScreener.com)