Investing.com -- Shares in Burberry Group PLC (LON:BRBY) fell in mid-morning trading on Thursday after the luxury fashion brand reported a quarterly slowdown in sales in the Americas that helped mitigate strong gains in its key Chinese market.
Growth in comparable store sales in the fourth quarter at the British group jumped to 16%, up from 1% in the prior three months and topping company-compiled estimates of 14% cited by Reuters.
The uptick in demand during the period was led by China, Burberry's largest market, which posted a 13% gain in sales thanks to the easing of strict COVID-19 rules in the country. However, sales fell by 7% in the Americas.
China's recovery has also provided a recent boost to Burberry's peers, including high-end goods giants LVMH (EPA:LVMH) and Kering (EPA:PRTP).
On a full-year basis, revenue jumped to £3.09 billion (£1 = $1.2430), pushing adjusted operating up by just over a fifth to £634 million.
"We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in Mainland China," said chief executive officer Jonathan Akeroyd in a statement.
He later told reporters that he is confident that Burberry can hit its full-year 2024 financial targets despite an "uncertain" business environment.
Burberry expects wholesale revenue to decline in the low double digits in the first half of its current fiscal year before it turns broadly stable over the rest of the period. When calculated at April 21 spot rates, currency headwinds are also anticipated to hit revenue by around £70M and adjusted operating profit by approximately £40M.
The company said it plans to carry out a share buyback program worth £400M in its 2024 financial year as well.