There’s arguably no sector of the retail industry that has more cross-currents than luxury goods. For every company that has defied the COVID-driven economic storm with positive results there’s another one that has not. And for every company that has reported those positive results, there’s a second wave of the pandemic knocking at the door.
Case in point: Burberry. Its earnings, announced Thursday (Nov. 12), showed a precipitous drop in profits, but a return to sales growth. Other good news included data that showed the British luxury icon was attracting new and younger customers during the recovery. However, it warned that current and even future lockdown measures in the EU would hurt. Ten percent of its stores are currently closed.