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The luxury group Burberry has sparked controversy over the supply of cotton in China to report a 55% increase in sales in one of its most important markets and surpass pre-pandemic levels.
The UK-based retailer faced a backlash in China after an international boycott of cotton grown in Xinjiang province amid concerns over human rights abuses, from which many Western retailers soon tried to distance themselves. -se. Burberry is dependent on mainland sales, as coronavirus-induced travel restrictions have kept the Chinese middle class at home.
Burberry said Friday that its activities in China had shown “relatively little impact” because of the controversy, which caused a brand ambassador to leave the retailer and a video game to take a stand against it. “We just reported a 55% increase in full-price sales, driven by new younger customers discovering the brand,” said CFO Julie Brown.
However, sales in Europe and the UK fell “more than 40%” in the first quarter, in part due to the lack of tourists due to the pandemic. In regions where many wealthy tourists come from, such as Russia and the Middle East, they increased by “double digits,” the London group said Friday.
However, the group’s sales rose to match pre-pandemic levels, rising 90% to £ 475 million in the 13 weeks ending June 26 compared to the same period last year. last year, when the Covid-19 crisis began.
“We have seen a strong recovery in [the first quarter] with online store sales comparable to pre-Covid-19 operations despite a continuing challenging environment, ”Burberry said, referring to the lack of international travel.
CEO Marco Gobbetti said last month that he would leave the company after five years to join Italian rival Salvatore Ferragamo, prompting investors to worry that his efforts to bring youth and glamor to the brand loses momentum.
Recent success on this front has included a marketing campaign with social media celebrity Kendall Jenner, which helped promote Burberry’s Olympia bag to a younger audience.
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