Lockdowns In China Limit Burberry’s Sales Growth To 1% in Q1
According to Burberry’s most recent figures, ongoing coronavirus restrictions in China have limited the luxury brand’s sales growth considerably in the first quarter of the year.
The company revealed that first-quarter sales dipped 35% in China — a vital market for its clothing. Before the onset of the pandemic in early 2020, around one-third of the global luxury industry relied on Chinese spending, both at home and as tourists aboard.
Excluding China, Burberry’s sales rose 16% globally, but when included, sales were up just 1%. The company said that EMEIA sales were up 47% compared with the first quarter of last year which was heavily impacted by lockdowns and global restrictions.
Burberry Chief Executive Jonathan Akeroyd commented: “Our performance in the quarter continued to be impacted by lockdowns in mainland China but I was pleased to see our more localised approach drive recovery in EMEIA (Europe, the Middle East, India and Africa), where spending by local clients was above pre-pandemic levels.”
“Our focus categories, leather goods and outerwear continued to perform well outside of mainland China and our programme of brand activations boosted customer engagement.”
“While the current macroeconomic environment creates some near-term uncertainty, we are confident we can build on our platform for growth,” Akeroyd continued.