Burberry sales up by 18% but losing to Paris and Milan 

British brand Burberry sales are up by 18% yearly on the back of post-Covid bounceback in China.

Burberry has confirmed a sales surge of nearly a fifth thanks to a bounce-back in China. Still, the luxury British fashion firm has alerted that London is losing out to competitors such as Paris and Milan, enjoying a stronger tourist shopping boom.

Is Burberry losing out to Paris and Milan? 

The British fashion brand, well known for its x check bags and raincoats, said that international sales increased 18% yearly to £589m in the quarter to 1 July – its most rapid growth rate in two years.

The firm pointed to a robust sales retrieval in mainland China, which suffered from Covid-19-related lockdowns last year, where sales increased 46% yearly. Nevertheless, the US was weak, with the Americas area reporting a sales drop of 8% year on year in the quarter.

This week, The luxury fashion business launched its “Best of Great Britain” campaign as it readies up for the September release of its autumn/winter collection; it said that outerwear and leather products proved a hit with customers.

Sales of outerwear, guided by the 167-year-old brand’s classic legacy rainwear, skyrocketed 36%, with vintage Burberry check and Francis sunglasses even selling well. The firm even said that leather products sales are up by 13% yearly.

However, the business, which said that tourist blossoming across Europe increased by 53% yearly, said that the UK government’s decision to stop letting tourists reclaim VAT on shopping purchases was damaging Britain’s status as a holiday destination.

“London has strength, but we are seeing a stronger recovery of [shopping] in continental tourists compared to the UK,” stated Ian Brimicombe, Burberry’s interim chief financial official. “At the moment, we are seeing Britons going to Europe and other nationalities going to continental Europe for their buying as opposed to London.”