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Burberry's sales dip shows European market remains challenging

By Don-Alvin Adegeest

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Business

Europe remains a challenging market for luxury brands, as Burberry’s latest results will attest. The British brand saw sales drop nearly 40 percent in the continent in the run-up to Christmas.

While its advertising campaign with footballer Marcus Rashford were a success to bring new customers to the brand, the 13 weeks to 26 December saw said it was hit by shop closures and a drop-off in tourism.

About 15 percent of its stores worldwide are currently closed with a third facing restrictions. Boss Marco Gobbetti said the brand faced an “uncertain trajectory” in 2021 given the spread of new variants of Covid-19.

The figures are less harsh than in March, when more than 60 percent of Burberry’s stores in EMEIA (Europe, Middle East, India and Africa) were closed and its sales nosedived 80 percent year on year. with those still open operating with reduced hours and with very weak footfall,” the company said on Thursday.

Major European cities including London, Paris, Milan and Madrid are in some form of lockdown and international tourism has ground to a halt as countries try to slow the spread of the virus.

Image: Burberry Chinese New Year campaign 2021 via Burberry

Burberry
Marco Gobbetti
Marcus Rashford