On May 14 (Reuters) – Burberry reported a rise in sales in the fourth quarter, with its recovery accelerating in the United States and China, but the war in Iran and the slowdown in tourism weighed on revenue in its region, Europe, and the Middle East.
The blow to the global travel sector and the surge in energy costs have compromised hopes of recovery in the luxury market, worth $400 billion (341.53 billion euros), reducing profits and worsening the slowdown observed in recent years after the post-pandemic boom.
Burberry posted a 5% increase in comparable sales for the quarter ending March 28, bringing annual growth to 2%. These figures are in line with analysts’ forecasts according to a consensus established by the company.
However, sales in the Europe, Middle East, India, and Africa (EMEIA) region fell by 2% in the fourth quarter, while sales in the Americas and Greater China both rose by 10% thanks to what the company called a “brand resurgence.”
Since taking over Burberry in July 2024, CEO Joshua Schulman has led the brand’s turnaround by focusing on its iconic trench coats and scarves, strengthening the brand’s 170-year-old British heritage among a younger clientele, and reducing costs.
A year after Burberry laid off 1,700 employees – one-fifth of its global workforce – as part of a cost-cutting plan, Joshua Schulman stated on Thursday that this financial year marked a “turning point,” with the company returning to profitable sales growth.
The operating profit for the year amounted to £115 million (132.69 million euros), after a loss of £3 million the previous year.
Burberry also announced on Thursday that its chairman, Gerry Murphy, would retire later in the year and be replaced by William Jackson.
(Reporting by Pushkala Aripaka in Bangalore and Helen Reid in London; French version by Rihab Latrache, edited by Augustin Turpin)
