Burberry reported a smaller-than-expected dip in sales this morning as new chief executive Joshua Schulman’s early efforts to revive the luxury label begin to take hold.
In a trading update for the 13 weeks to 28 June, the British fashion house said retail revenue fell six per cent to £433m, with comparable store sales down just one per cent – a sharp improvement on the 21 per cent plunge it posted this time last year.
Sales ticked up in key regions, with the US up four per cent and EMEIA rising one per cent, although Asia remains a drag.
Greater China fell five per cent, while wider Asia-Pacific was down four per cent, hurt by weak demand in Japan.
Burberry said it saw “encouraging early signs” of progress as Schulman’s Autumn 2025 collection landed in stores, and highlighted stronger performance in core categories like outerwear and scarves, as well as an improvement in online sales.
“We have moved from stabilising the business to driving Burberry forward with confidence,” Schulman said.
The company is pressing ahead with its transformation plan called ‘Burberry Forward’, which aims to simplify operations and boost productivity.
Burberry is targeting £80m in annual cost savings by 2026 and has launched a series of monthly campaigns tapping into British heritage themes.
Burberry back from the brink?
This morning’s numbers land just a week after Burberry’s stock staged a dramatic recovery.
Shares in the FTSE 250 listed brand have more than doubled in the space of three months, from a low of 654p in April to over 1,250p today, fuelled by optimism around Schulman’s ability to steady the ship.
This bounce has put Burberry firmly back in contention for re-entry into the FTSE 100, less than a year after being relegated from London’s blue-chip index.
Schulman, who took the reins last July, is under pressure to deliver. His pay deal is directly tied to the company’s share price performance, with a potential bonus worth 300 per cent of his £1.2m salary if he can push the brand back into the top tier and create value for shareholders.
It comes after a bruising year for the brand, which in May reported a full-year loss of £66m and a sharp revenue drop to £2.46bn.
Despite the fragile luxury market and ongoing macroeconomic headwinds, Burberry told the market today it expects to see the impact of its strategy build in the second half of the year.
