1 week ago
5
The heritage brand reported a pre-tax loss of £80m from a £219m pre-tax profit in the same period last year.
Revenue plunged 20% to £1.08bn. Retail sales fell 19% year on year to £885m, while wholesale sales plummeted 29% to £169m. However, licensing revenue grew 5% to £32m.
Burberry attributed the drops to several factors, including “inconsistent brand execution, and a lack of focus on our core outerwear category and our core customer segments”.
CEO Joshua Schulman, who joined the business in June this year, replacing Jonathan Akeroyd, said: “Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth. We have a powerful brand with broad appeal among luxury customers, authority in the outerwear and scarf categories that have remained resilient through this period, and a strong presence in all key luxury markets.
“Now, we have a clear framework to re-ignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry's best days are ahead.”
The brand announced a strategy entitled “Burberry Forward”. This include plans to "align pricing with category authority, optimising the brand’s presence in wholesale and outlet, and balancing seasonal fashion messages with campaigns celebrating outerwear authority", among other factors.
Delivery of the plan will be facilitated by greater alignment between Burberry’s commercial and creative teams.
Burberry added that while there was much to do, it was “confident we can get back to generating £3bn in annual revenue over time, while rebuilding margins and driving strong cash generation”.
English (US) ·