High-end retail earnings have blown away initial estimates, shedding new light on the mindset of consumer shopping habits and the strength in retail during a time of high uncertainty. Exclusive designer brands were able attract young shoppers who want to splurge on something special after saving for nearly two years due to the pandemic.
“Full-price sales continued to grow at a double-digit percentage compared with two years ago, accelerating from the previous quarter and reflecting a higher quality business. Our focus categories outerwear and leather goods performed strongly as we continued to attract new, younger consumers to the brand,” said Burberry Group Chairman, Gerry Murphy.
French giant Richemont and Italy’s Prada Group also reported results this week, with sales up 38% and 41% respectively.
Burberry has made efforts to attract first-time buyers and drive growth across categories by creating a renewed focus on storytelling and meaningful retail experiences. The company has introduced a new ad campaign dedicated to outerwear and a new store concept to bring a mix of omnichannel innovations to consumers.
Prada has made adaptive efforts to meet the ever-changing consumer where they are in the market. The company noted an increase in pre-tax earnings was supported by higher contribution from its retail channel as well as by full-price sales.
“2021 was a year full of challenges but we proved to be ready and quickly responded to the needs of an extremely dynamic market, putting in place actions that allowed us to understand changes in consumer behavior effectively,” Prada Group CEO Patrizio Bertelli said in a statement.
The portfolio of “Maisons” within the Richemont group also saw an increase in demand and performance, with retail sales (+45%) leading the channel, while jewelry (+38%) and fashion (+37%) delivered the strongest business-level performance.
“On a two-year basis, sales exceeded pre-Covid levels across all regions, channels and business areas,” Richemont said in its trading update.
Source: Luxury Retailers PYMNTS
Photo Credit: Luxury Retailers PYMNTS
