Burberry (LON:BRBY) will end the practice of destroying unsold luxury goods, the blue-chip retailer has said. The move comes after the company faced backlash earlier this year after it emerged that the group had destroyed more than £28 million of unwanted products over the past year, equivalent of more than 20,000 of its signature trench coats.
Burberry’s share price has fallen into the red in today’s trading, having given up 0.38 percent to 2,108.00p as of 13:28 BST. The decline is largely in line with losses in the broader UK market, with the benchmark FTSE 100 index currently standing 0.25 percent lower at 7,364.63 points. The group’s shares have added just under a fifth to their value over the past year, as compared with about a 0.3-percent gain in the Footsie.
Burberry stops burning clothes
Burberry announced in a statement today that it would stop the practice of destroying unsalable products, with immediate effect, and would instead expand its efforts to reuse, repair, donate or recycle unsold goods. The blue-chip retailer further confirmed that it would no longer use real fur.
“Modern luxury means being socially and environmentally responsible,” the group’s chief executive Marco Gobbetti said in the statement, adding that the retailer was “committed to applying the same creativity to all parts of Burberry as we do to our products”.
Earlier this year, it emerged that more than £90 million of Burberry products had been destroyed over the past five years.
Analysts on luxury goods retailer
HSBC, which sees Burberry as a ‘reduce,’ boosted its price target on the shares from 1,900p to 2,100p yesterday, while Citigroup reaffirmed the company as a ‘neutral,’ without specifying a valuation on the stock. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 1,951.47p.
As of 13:58 BST, Thursday, 06 September, Burberry Group plc share price is 2,112.00p.