Burberry Sales Down 48% In Q1 2020 as Revenue Drops by £241 Million GBP

“Sales were severely impacted by the drop in luxury demand from COVID-19.”

By
Fashion 
7,422 Hypes 10 Comments

British luxury fashion house Burberry has just announced its financial results for Q1 of 2020, and the numbers aren’t looking good, largely due to the ongoing coronavirus pandemic. Overall, retail revenue dropped 48-percent from £498 million GBP ($628 million USD) in June of 2019 to just £257 million GBP ($323 million USD) this past June. Comparable store sales also decreased by 45-percent over the quarter, compared to a 4 percent increase during the same period last year. The financial results have led to a 4.4-percent drop in stock price for the company, now sitting at £14.88 GBP ($18.68 USD) per share on Wednesday morning.

“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.”

In other business-related news, Dan Bilzerian’s cannabis company lost $50 million USD in 2019.

Read Full Article

What to Read Next

Saleen Teases Its "Big Oly" 2021 Ford Bronco
Automotive

Saleen Teases Its "Big Oly" 2021 Ford Bronco

Just days after the new Ford Bronco unveiling.

Certifications Suggest Apple iPhone 12 Has Smaller Battery Than iPhone 11
Tech

Certifications Suggest Apple iPhone 12 Has Smaller Battery Than iPhone 11

Despite higher battery demands.

The Weeknd x READYMADE 'After Hours' Capsule Arriving Exclusively at HBX
Fashion

The Weeknd x READYMADE 'After Hours' Capsule Arriving Exclusively at HBX

Celebrates the Canadian artist’s project spending a month at No. 1 on the Billboard 200.


CASETiFY Goes Galactic For its NASA Capsule
Fashion

CASETiFY Goes Galactic For its NASA Capsule

Marked by the aeronautics and space research program’s iconic logo.

Palm Angels Imbues Tropical Motifs in New High Top Sneakers
Footwear

Palm Angels Imbues Tropical Motifs in New High Top Sneakers

Seen previously in a low-top design.

PLEASURES' Marilyn Manson Collab Focuses on Iconic Album Art
Fashion

PLEASURES' Marilyn Manson Collab Focuses on Iconic Album Art

Celebrating the icon known as the Antichrist Superstar.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Help us serve you better

We appreciate your support in allowing HYPEBEAST ads, where we can share contents from the latest fashion, to those culturally relevant. In adding HYPEBEAST to your ad blocker's whitelist, ads on our sites will show while you continue to browse.

Help Support Us

We need ads to keep the lights on and to continue providing free news to our readers. We’d appreciate your support by whitelisting HYPEBEAST on your ad blocker. That way you can keep reading all the great stories for free.

If you have already whitelisted us, simply refresh this page. To find out how to whitelist us, click the button below.

Back

Add Us to Whitelist

We appreciate your support in allowing HYPEBEAST ads. Most ad blockers have similar whitelisting steps and settings. If you need assistance, please contact us.

Adblock Plus

  1. Click on the red ABP icon in the upper right corner of your browser.
  2. Click “Enabled on this site” to disable ad blocking for the current site. In Firefox click “disable on HYPEBEAST”.
  3. Refresh the HYPEBEAST page that you were viewing.

Adblock

  1. Click the AdBlock hand icon.
  2. Click “Don’t run on pages on this domain”.
  3. A new “Don’t run AdBlock on…” dialog may be displayed in the middle of the screen.
  4. Move the “Site” slider to the right. After that, click “Exclude”.
  5. Refresh the HYPEBEAST page that you were viewing.

uBlock

  1. Click the uBlock icon.
  2. Click the large blue “power” button in the menu that appears to whitelist the current website.
  3. Reload the HYPEBEAST page that you were viewing.

Firefox Browser

Firefox Tracking Protection may activate our whitelist notice, which can be disabled temporarily for a browsing session by clicking the shield icon in the URL bar and following the instructions.

Disconnect

  1. Click the Disconnect icon.
  2. Click “Whitelist site”.
  3. Refresh the HYPEBEAST page that you were viewing.