Burberry believes efforts to attract younger consumers are working
Luxury brand Burberry has reported revenues of £878 million for the first half of its current financial year, the six-month period to September 26. This is a decline of 31% compared to its figures for the same period a year ago.
Revenues declined by 45% in the first quarter. The figure for the second quarter was a fall of 6% year on year. Burberry said there had been “good recovery as the half progressed”. It said its recovery had accelerated in September and October. In September, the decline came down to a “low single digit” year and year and in October, the brand’s results showed growth compared to the same month in 2019.
It said it had “reoriented” the business to “capture opportunities in rebounding markets”. Sales were up by 10% year on year in Asia, with a strong performance in China and in South Korea “more than offsetting” a weaker performance in other parts of Asia. A “social retail” store that Burberry opened in Shenzhen as an exclusive partnership with Chinese e-commerce company Tencent is “outperforming expectations and attracting new and younger consumers to the brand”, it said.
In the Americas, comparable store sales were up by 21% in the second quarter, with the US higher than the regional average, “driven by momentum with new and younger customers”.
Commenting on the results, chief executive, Marco Gobbetti, said: “We are encouraged by our overall recovery and the strong response to our brand and product, particularly among new and younger customers. In an environment that remains uncertain, we will continue to deliver exceptional product, localise plans and shift resources, while leveraging the strength of our digital platform to inspire customers.”
