(This story has been refiled to remove an incorrect image)
By Helen Reid
LONDON, July 17 (Reuters) - Burberry's recovery continued in the April-June quarter thanks to strong sales in the U.S. and China, while it said conflict in the Middle East dented tourist spending in Europe.
CEO Joshua Schulman, who has led a turnaround since taking the helm two years ago, is focused on the two "must-win" markets of the U.S. and China as he tries to revive the luxury brand.
It's not the only luxury group to have
honed in on the U.S., and its newly-minted millionaires from the AI boom, as the sector tries to revive growth after a two-year slump.
For Burberry, the strategy appeared to be working, with sales in the Americas up 12% from a year earlier during the quarter thanks to new customers, and Gen Z shoppers helping boost China sales by 9%, the British group said on Friday.
"We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead," Schulman said in a statement.
Overall comparable store sales in Burberry's first financial quarter grew 5%, in line with analysts' expectations, while sales in the Europe and Middle East region fell 3%.
Though Burberry's strategy focuses on core products like trench coats, jackets and scarves, Schulman has also tried to expand the brand's presence in spring and summer clothing, launching a swimwear collection and hosting "takeovers" of hotels in France, Greece, and Bangkok this summer.
Burberry's first-quarter revenue - which is typically the smallest of the year - rose to £455 million ($612.88 million) from £433 million a year earlier.
($1 = 0.7424 pounds)
(Reporting by Helen Reid and Yamini Kalia; Editing by Susan Fenton)
