Luxury spending was booming during the COVID-19 pandemic, but the tide has since turned. One of Europe’s hottest industries is seeing sales fall, one big brand after another—and British brand Burberry is the latest of them.
The company said Thursday it might fall short on its sales target for the current financial year as demand for high-end goods contracts. In six months to the end of September, Burberry clocked in a sales growth of 4% to £1.4 billion (about $1.7 billion). However, the coat-maker’s operating profit plunged 15% for the same period. Store sales were sharply down in the Americas, while it stayed strong in the Asia Pacific region.
