Luxury goods firms Richemont and Burberry say China sales slumped amid Covid surge

Demand for luxury goods in China, the industry’s biggest growth engine, was muted by continued Covid-19 restrictions for much of last year.

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Luxury-goods makers Richemont and Burberry lost almost a quarter of their sales in China as customers were kept at home by strict pandemic controls and a viral surge as the government loosened restrictions.

Richemont’s revenue from China plunged 24% last quarter, while Burberry’s comparable sales fell 23% in that crucial market, the companies said Wednesday. Both said sales grew elsewhere but struggled to make up for the slump.