Lockdowns In China Hit Burberry’s Q1 Sales Results

Words by Retail Bum

Lockdowns In China Hit Burberry's Q1 Sales Results
Lockdowns In China Hit Burberry's Q1 Sales Results
Burberry saw a 1% year-over-year increase in Q1 sales as lockdowns in Mainland China crippled business growth.

The British luxury brand, known for its beige trench coats, is more vulnerable to lockdowns in China than other brands, as the Asian country accounts for about a third of its global sales. It, of course, does not help that its home market is also seeing a decline in consumer spending due to soaring inflation and higher energy bills.

That said, the EMEA market proved to be a silver lining for Burberry, with comparable sales increasing by 47%. Overall, the company’s comparable store sales were up 16%.

The company saw double-digit growth in sales of its leather goods and outwear outside the Mainland China market. Meanwhile, rainwear, jackets, and the company’s Lola handbag range also performed well, FashionUnited reported.

“Our performance in the quarter continued to be impacted by lockdowns in Mainland China, but I was pleased to see our more localized approach drive recovery in EMEIA, where spending by local clients was above pre-pandemic levels,” said CEO Jonathan Akeroyd.

“While the current macro-economic environment creates some near-term uncertainty, we are confident we can build on our platform for growth,” he added.

Looking ahead, the company is maintaining its target of high-single digital revenue growth.

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