Burberry and other labels are destroying millions of dollars of stock

Upscale fashion label Burberry has destroyed millions of dollars’ worth of clothing and perfume in a move questioned at its annual meeting.

The British firm’s annual report stated that it destroyed £28.6 million ($37.1 million) of goods for the year ended March 31, 2018, an increase on the £26.9 million in its 2017 financial year.

“The cost of finished goods physically destroyed in the year was £28.6 million… including £10.4 million of destruction for beauty inventory,” the company’s annual report stated.

Burberry isn’t the first 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.

One Burberry investor asked at its annual meeting last week why shareholders couldn’t be given the opportunity to buy the unsold items.

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