The luxury fashion brand said sales fell 35% in China in the first quarter due to ongoing Covid restrictions. It is a key market for the company, with Chinese buyers representing about a third of the global luxury industry before the pandemic, both at home and as tourists abroad. Excluding China, Burberry’s sales rose 16% during the quarter, with trading in Europe, the Middle East, India and Africa up 47% compared to last year’s first quarter which was hit by the lockdown. This is largely due to a recovery in sales to American tourists in the region. Overall, however, sales rose just 1%. Jonathan Akeroyd, chief executive of Burberry, said: Our performance in the quarter continued to be affected by the lockdowns in mainland China, but I was pleased to see our more local approach driving the recovery in EMEIA, where spending by local customers was above pre-pandemic levels. Our focus categories, leather goods and outerwear continued to perform well outside Mainland China and our brand activation program strengthened customer loyalty. While the current macroeconomic environment creates some near-term uncertainty, we are confident that we can leverage our platform for growth.
