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Burberry’s Sales Spike With Young, New Shoppers Driving Demand

Burberry’s Sales Spike With Young, New Shoppers Driving Demand

Burberry's Sales Spike With Young, New Shoppers Driving Demand

Burberry’s sales have risen above pre-pandemic levels, with new and younger shoppers and demand for handbags and trench coats driving sales.

The company’s retail revenue for the 13 weeks leading up to June 26 rose by 86 percent, reaching $662 million. Comparable sales increased by 90 percent in the same period last year and 1 percent higher than the period two years ago.

Burberry particularly benefitted from growth in sales in the Americas, where the brand is resonating more with a younger clientele. Comparable sales were up 341 percent a year ago and 34 percent up two years ago.

Sales also improved in mainland China and South Korea, which helped comparable sales in Asia Pacific increase by 27 percent. This growth came despite calls for a boycott in China over the Xinjiang controversy in March this year.

The spike in sales comes at a time when the British brand is seeking to replace Marco Gobbetti, the company’s chief executive who is leaving to take up the reins at Salvatore Ferragamo, Reuters reported.

After Gobbetti’s departure was made public, the company’s shares tumbled by 10 percent.

Burberry’s Chief Financial Officer Julie Brown noted that while Gobbetti’s announcement had come as a surprise, it was “very much a personal decision.”

She added that Riccardo Tisci, the company’s creative director, brought onboard by Gobbetti to turn around the brand, remains committed to continuing his work with Burberry.

“(Tisci) remains very excited by the opportunity to continue to inspire our customers with his imprint on Burberry’s identity, reinforced by the response to his latest collection,” she said. “We’re very, very confident of Riccardo’s position.”

Gobbetti plans to remain at Burberry until the end of 2021.

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