Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Burberry held back by China lockdowns and U.S. weakness

By Paul Sandle

LONDON (Reuters) -Luxury brand Burberry was hurt by lockdowns in its biggest market China and an abrupt reversal in fortunes in the Americas, limiting its first-quarter sales rise to 1%.

The British brand, known for its red, black and camel check and TB monogram, saw comparable sales in mainland China plunge 35% as COVID-19 lockdowns disrupted stores and distribution.

All its stores were open by the end of June, Chief Financial Officer Julie Brown said, and the company was “encouraged” by how they were performing, but testing requirements were holding back the return of some shoppers.

Luxury rival Richemont also felt the shortfall in mainland China, where its sales were 37% lower for the quarter.

Outside China, Burberry reported a 16% rise in comparable store sales, with Europe up 47%, helped by store ranges tailored to local demand rather than to still absent tourists from Asia.

But the Americas, Burberry’s best performing region last year, went into reverse, with comparable store sales down 4%.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

Brown said leather bags and outerwear were selling well, but “sneakers and slides – the shoe business – and the small leather goods category (were) somewhat weaker.”

“I think this is largely because people have changed from staying in and wearing casual wear to be going out a lot more now than they were before,” she said.

Shares in Burberry, which are down 20% over the last 12 months, fell 7% in early deals on Friday.

Brown said Burberry was facing increases in transportation, commodity and labour costs, but it was managing them by focusing on procurement efficiencies.

“We’re also very conscious of the pressure on the people and communities,” she said. “But in terms of business overall, we’ve not seen a major pressure on younger consumers at this point in time.”

Burberry said its medium-term target of high-single digit revenue growth and 20% margins was unchanged.

(Editing by William James and Mark Potter)

Recent Post: