Chinese Lockdowns Limit Burberry’s Sales Growth

Burberry revealed that  first-quarter sales dipped 35% in the country which is a vital market for its clothing. Prior to the pandemic, approximately one-third of the global luxury industry was reliant on Chinese spending, both at home and aboard as tourists. 

Excluding China, Burberry’s sales were up 16% globally, but when included, sales only rose by 1%. 

“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,” commented Burberry Chief Executive Jonathan Akeroyd.

“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.