Burberry and Richemont, which owns Cartier, have had tough quarters in the country.
“The biggest impact in China is really relating to Covid as opposed to any wider economic impact,” Julie Brown, the COO and CFO of Burberry, told Bloomberg. “Forty percent of the distribution was effectively closed at the beginning of the quarter.”
Elsewhere, though, these very same companies are doing quite well. Richemont saw its sales increase by double digits in the United States, Europe and Japan, and saw triple-digit jumps in France. The company attributed its European growth to both strong domestic demand and the return of tourist dollars to the continent. Burberry, meanwhile, saw a much more modest increase of 1 percent in the most recent quarter.
Despite those strong sales in other regions, the two companies’ experiences in China are weighing on their overall performance, with both of their shares falling on the stock market. Richemont fell as much as 6 percent in Swiss trading, while Burberry slid about 6.6 percent in London. With Covid cases rebounding once again in China, it doesn’t seem like the situation for luxury brands will change that much in the near future, at least not in a more positive direction. And with inflation rising across the globe, it’s anyone’s guess how the markets in other countries will hold up.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Reactions to China’s economic contractionChina's economy contracted sharply in the second quarter while annual growth also slowed significantly, highlighting the colossal toll on activity from widespread COVID lockdowns, which jolted industrial production and consumer spending.
Weiterlesen »
China's economy shrinks 2.6% after being impacted by virus shutdownsChina's economy contracted sharply in the second quarter after being impacted by COVID-19 lockdowns that took place in many cities during the pandemic.
Weiterlesen »
China’s Economic Growth Sees Major Slump Following Months Of Stringent Covid LockdownsIn the second quarter of 2022 China’s gross domestic product (GDP) grew a measly 0.4% compared to the same period last year.
Weiterlesen »
China GDP data to show sharp slowdown in Q2, tepid recovery in JuneChina is expected to report a sharp slowdown in economic growth in the second quarter after widespread COVID lockdowns jolted factories and consumers, although activity in June may have perked up.
Weiterlesen »
China’s Economy Records 0.4% Growth, Weakest Since Wuhan LockdownBeijing’s policy of imposing lockdowns in entire cities or regions to squash Covid-19 has depressed spending, investment and manufacturing activity
Weiterlesen »
China’s economy contracts as Covid lockdowns curb businessChina’s economy contracted sharply in the second quarter, official data showed Friday, highlighting the impact of extended lockdowns in Shanghai and other cities as the country sticks to its tough “zero-Covid” policies.
Weiterlesen »