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Is there light at the end of the tunnel at Burberry? Better-than-expected sales in the all-important holiday period have allowed the British fashion chain to limit the decline in sales. Even better, there may be a positive profit on the horizon.
Strong year-end campaign
During the recent end-of-year period, which is actually the third quarter of the luxury brand’s broken fiscal year, comparable sales decreased by 4 %. This is a significant improvement compared to the 22 % decline in the first half of the fiscal year. In America, sales even increased by 4 %, while Asian sales decreased by 9 %.
It appears that the new strategy of CEO Joshua Schulman, who took the helm of the fashion retailer six months ago, is already bearing fruit. Schulman not only announced a cost-cutting programme, but also launched a new strategic plan called ‘Burberry Forward’. This plan aims to refocus the fashion brand on its traditional strengths, such as coats and scarves, and on regaining customers who appreciate the timeless British style.
The holiday season campaign, with the slogan “Wrapped in Burberry”, has proven to be a hit. However, the road ahead is still long, Schulman warns: Burberry expects a revenue decline of 65 million pounds (nearly 80 million euros) in 2025, but may still end the fiscal year with a small profit – despite an operating loss of 41 million pounds (50 million euros) in the first half of the fiscal year.
