Burberry: over 32 million euros of goods destroyed in 2018

Burberry is under fire for the elimination of unsold storage goods. 

From its 2017/18 annual report, in addition to an annual turnover of $3.61 billion, the brand has unveiled that "the cost of finished goods was physically destroyed in the year for a total amount of $37.8 million (over 32 million euros)", $13.76 million of "Beauty Inventory" and the rest of prêt-à-porter products and accessories.

The practice left many investors unsatisfied, who, during last week's assembly, complained that they had not been asked about it and criticized the failure to purchase surplus items.

The small stock surplus is today one of the elements that luxury companies use to distinguish themselves from the fast fashion brands, for which disposal begins to be a global problem in terms of environmental sustainability. For example, the Danish TV channel TV2, accused H&M of having burned approximately 12 tons of garments, still usable and salable, every year in recent years. 

Destroying unused products could be a useful choice to solve some problems with customs duties and protection.

Just think of US policy: if the goods imported within their borders are not used, exported or destroyed under customs supervision, brands are allowed to get 99% of the duties, taxes or fees paid back. 

Will the new CEO Marco Gobbetti continue with this practice?

For now he has declared that the leather inventories be been given to the fashion company Elvis & Kresse that recycles them, transforming them into new products.