Burberry sales return to pre-pandemic levels as young shoppers have fun | Burberry Group
Luxury fashion retailer Burberry has reported a rebound in sales to pre-pandemic levels, driven by a boom in younger shoppers, with products such as leather goods, jackets and shoes proving particularly popular.
Burberry, which operates 454 stores, concessions and franchises worldwide, said it had made a “great start to the year” and that the takeover allowed it to stop the discount pricing strategy used in stores and in line around the world during the coronavirus crisis to try and boost sales.
The luxury fashion brand reported revenue of Â£ 479million in the 13 weeks to June 26, up 86% from the same period last year and 1% on sales in 2019.
âFull-price sales have accelerated, our collections and campaigns attracting new, younger luxury customers to the brand,â said Marco Gobbetti, who announced last month that he would be stepping down as Managing Director after nearly five years.
âWe saw strong growth in our strategic categories, particularly leather goods and outerwear, and moved away from markdowns in digital stores and department stores. “
Burberry said sales of full-price products were up 121% from last year and 26% from 2019. Full-price online sales more than doubled from the pre-period. -pandemic.
Full-price sales of leather goods and outerwear such as jackets, quilts and duvets doubled from last year, while footwear sales posted triple-digit growth of ‘year after year.
Sales levels increased 146% year-over-year in Europe, Middle East, India and Africa (EMEIA), 27% in Asia-Pacific and 341% in the Americas.
Sales in Asia-Pacific returned to pre-pandemic levels, up 7% from 2019, driven by a boom in new buyers in mainland China, which were 55% higher than before the pandemic, and in Korea, where they increased by more than 90%. The Americas region is also back to pre-pandemic sales levels, up 34%.
However, sales in the EMEIA region remain 38% below pre-pandemic levels as the region continues to be affected by low levels of tourists and store closures due to Covid-19, particularly in Continental Europe.
On average, 11% of Burberry stores were closed during the negotiation period, although this was reduced to just 3% by the end of June, with pandemic-related restrictions continuing to be relaxed in most markets. . However, more than a third of stores are still operating on reduced hours.
“We have had an excellent start to the fiscal year,” said Gobbetti, who will become managing director of Italian luxury group Salvatore Ferragamo. âDespite a still difficult external environment, we are very satisfied with the progress made against our strategy. “