Impacted by the ongoing pandemic in Asia, luxury fashion house Burberry has reported modest growth at the end of the first quarter of its fiscal year 2023. Despite the challenges, the company’s revenues saw a 1% increase, reaching £505 million. The period from April to June presented a mixed performance for Burberry, mainly due to the resurgence of the pandemic in Asia, which disrupted 40% of the brand’s distribution and caused difficulties in online sales.
The most affected country within the Asia-Pacific region was mainland China, experiencing a significant decline of 35% in sales. However, Japan partially compensated for these losses, providing some relief in this crucial luxury market. In the Americas, Burberry faced a 4% slowdown despite strong performance in the leather goods segment. On a positive note, the EMEIA region (Europe, Middle East, India, and Africa) witnessed a substantial increase of 47%, driven by higher local demand.
Burberry CEO Jonathan Akeroyd commented on the company’s performance, noting the impact of lockdowns in mainland China but expressing delight in the recovery seen in the EMEIA region. He highlighted that localized approaches and priority categories such as leather goods and outerwear contributed to the brand’s success outside of mainland China. Additionally, Burberry’s brand activation program boosted customer engagement.
The company’s brand activation strategy during this period proved ambitious and diverse. It included the introduction of the TB Summer Monogram pattern in pop-up iterations across popular tourist destinations, immersive installations in London, and the notable opening of its flagship store in Paris. These initiatives aimed to provide hyperphysical experiences and aligned with Burberry’s recent ventures into the Web3 space. The brand collaborated with Mythical Games on non-fungible tokens (NFTs) and the metaverse, and also integrated its Lola bag into the popular gaming platform Roblox. Burberry credits these efforts with increasing community engagement and generating nearly half a million new customer profiles in its database.
Overall, despite the challenges posed by the pandemic, Burberry managed to achieve modest growth in the first quarter of its fiscal year 2023. The brand continues to adapt and innovate, embracing a mix of physical and digital experiences to engage its customers.
Useful links:
– Burberry Official Website
– Business of Fashion – Burberry Experiences Mixed Results in Q1 2023
