Celebrity model Kendall Jenner’s campaigns with Burberry helped boost the luxury retailer’s sales over the past few months, new figures show.
Burberry said its latest collections and campaigns have attracted “new, younger luxury customers,” with items such as coats, shoes and bags selling particularly well.
Last month, Burberry shares plunged after its boss Marco Gobbetti, credited with reviving the British fashion champion, announced his shock resignation.
Savvy Marketing: Burberry’s collection with celebrities like Kendall Jenner proving to be a hit with shoppers
In its latest update for the first quarter, Burberry said its sales growth Despite some restrictions for Covid-19 still lingering, they returned to pre-pandemic levels.
Owners said they’ve been encouraged to sell more product at full price, relying less on discounts, and encourage wealthy Asian and American shoppers to snap up the latest trench coats while traveling on vacation to Europe rather than spending them in local stores.
From 13 weeks to 26 June, sales reached £479 million, compared to the same period a year earlier, when the pandemic was at its peak.
In mainland China, Burberry said sales were more than 55 percent and Korea more than 90 percent, exceeding pre-pandemic levels.
The company said: ‘This was driven by new, local, young customers shopping in our core categories.’
Sales in Europe were down 38 per cent over pre-Covid levels, while its US and Asia Pacific operations saw 34 per cent and 7 per cent more sales, respectively, than before the pandemic.
New customers: Burberry said its latest collections and campaigns have attracted “new, younger luxury customers.”
The group said about 35 percent of its stores were currently operating with shorter opening hours as tourists continue to stay away. Three percent of the company’s shops are temporarily closed due to the pandemic.
The retailer’s wholesale arm is expected to grow 60 per cent year-on-year due to a strong order book, but sales at unfavorable currency rates are expected to reach £114 million this year.
The group also today reaffirms its position to become ‘climate positive’ by 2040.
Since the end of the first quarter, the group has opened a new flagship store in Sloane Street, London, with three more flagships expected to open in the coming year.
Outgoing boss Marco Gobetti said: ‘We saw strong growth in our strategic categories, particularly leather goods and outerwear, and exited markdowns in digital and mainline stores.
‘We continue to roll out our new store concept, which will change the way customers experience our brand and product in a uniquely British luxury setting.
‘Despite the continuing challenging external environment, we are very pleased with the progress made against our strategy. With the company firmly established on the path of growth and growth, we are confident of achieving our medium term goals.
Shares in the FTSE 100-listed Burberry are currently down 3.67 percent, or 76.00p to 1,994.00p. A year ago, the group’s share price stood at 1,435.50p.
Richard Hunter, Head of Markets, Interactive Investor, said: ‘Overall, it appears that at least some of the accumulated consumer savings globally have made their way toward Burberry products, with some lost from the lack of international travel. revenue, and this resulted in an 86 percent increase in retail revenue.
The share price has also reached pre-pandemic levels, rising 41 percent over the previous year, compared to a 12 percent increase for the broader FTSE100.
‘In fact, given the strength of the start of the new year, the long-standing consensus of stocks may even be subject to some upgrades.’
Susanna Streeter, an analyst at Hargreaves Lansdowne, said: ‘A major obstacle waiting to propel the company on this catwalk of recovery is the departure of CEO Marco Gobetti.
‘He has been seen as the turnaround czar for Burberry and investors are questioning the company’s ability to continue driving through strategic turnaround without being on the front lines. Finding the right replacement to fit your big shoes will not be an easy task.’
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