China sales rebound in Q4
U.S. weakness deepens
Shares down 4.9

LONDON, May 18 Reuters British luxury fashion brand Burberry on Thursday reported strongerthanexpected fourthquarter sales driven by a rebound in China but continued weakness in the United States sent its shares down sharply.

Comparable store sales at the FTSE 100 group rose 16, accelerating from 1 in the third quarter and above a company compiled consensus of 14, with sales in its biggest market China rising 13 in the three months to April 1.

The global spend by Chinese consumers, which is recovering after the country dropped strict COVID19 restrictions, accounted for 30 of total business sales.

But Burberry39;s shares were 4.9 in midmorning trading after the Americas remained a weak spot, with quarterly sales declining 7 in Q4.

There39;s a challenge there at the moment, Chief Executive Jonathan Akeroyd told reporters, reflecting weaker spending by younger consumers, which was affecting its lowerpriced categories.

Burberry also maintained its 2024 and mediumterm targets while stating it was mindful of macroeconomic and geopolitical environment.

Its shares had hit record highs in recent months on the back of optimism over the recovery in China.

The fact Burberry hasnt lifted its guidance for the new financial year after … a strong set of results, and reference to … the macroeconomic and geopolitical environment, appear to have been the trigger for some investors to take profits in the stock,…