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They say misery loves company, and it seems like there’s some solace for luxury retailers experiencing a dip in their profits, in that at least they’re suffering together.
British luxury brand Burberry recently admitted it will likely miss its full-year revenue goal for fiscal 2024, as sales in China have weakened despite high demand elsewhere in Asia. And a slowdown in US sales only made things worse.
Still, sales remained strong in the EMEIA region. Revenue jumped 4% at reported rates by the end of September, largely due to sales of outerwear and leather bags.
Speaking about the company’s quarterly results and its unfavorable full-year estimate, Burberry CEO Jonathan Akeroyd blamed the “challenging macroeconomic environment,” but struck a positive tone about the future.
“We are confident in our strategy to realize our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets,” he said in a statement.
The reported decline in consumer luxury spending has also impacted LVMH and Kering recently.
- While LVMH reported slower growth, Kering disclosed a 13% dip in its Q3 revenue. The luxury group was primarily impacted by falling sales for brands like YSL, which was down 16% on a reported basis, followed by Gucci, whose sales fell 14%, and Bottega Veneta, which was also down 13%.
Although some brands like Hermès had a stronger quarter—it reported a 16% sales increase—suffice it to say that things are looking less than lavish for luxury now.—JS