Burberry has revealed its financial results for Q1 OF 2020 and the numbers have been affected due to the ongoing coronavirus pandemic.
The retail revenue dropped 48-percent from $628 million in June 2019 to $323 million June 2020. Store sales also decreased by 45-percent over the quarter, compared to a 4 percent increase during the same period last year
“In Q1, sales were severely impacted by the drop in luxury demand from COVID-19 and we expect it will take time to return to pre-crisis levels with the resumption of overseas travel,” said the company’s CEO Marco Gobbetti in a statement. “We are encouraged by the improving trends in all regions and the promising exit rate for June. We saw an excellent response to new product launches in recovering economies as well as online. Demand for leather goods was particularly strong in Mainland China and Korea, bringing new, younger luxury customers to the brand. As we enter the second phase of our strategy, we are sharpening our focus on product and making other organisational changes to increase our agility and generate structural savings that we will be able to reinvest into consumer-facing activities to further strengthen our luxury positioning.”