British fashion house Burberry to stop burning unsold items

British fashion house Burberry to stop burning unsold items 2

Burberry CEO Marco Gobbetti said in a statement emailed to CNBC: “Modern luxury means being socially and environmentally responsible. This belief is core to us at Burberry and key to our long-term success. We are committed to applying the same creativity to all parts of Burberry as we do to our products.”

The announcement comes at a time of change for the 162-year-old company. Gobbetti is pushing for the firm to become a “higher luxury” fashion house, like Gucci or Hermes, and announced a 2 percent rise in full-year adjusted profit to £467 million ($604 million) in May.

Gobbetti, in charge since July 2017, hired Italian designer Riccardo Tisci as its creative director in March. Tisci replaced Christopher Bailey, who had been at the company for 17 years, and his debut collection will be shown at London Fashion Week on September 17. The company also revamped its logo, creating an interlocking TB pattern after founder Thomas Burberry, in August.

Burberry isn’t the only company to destroy goods. Richemont, a maker of luxury jewelry and watches including the Cartier brand, was reported to have disposed of 481 million euros ($557.2 million) worth of goods in May to prevent them being discounted on the secondary, or “grey” market, which reduces their appeal.

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