Burberry has said it is “acting with urgency” as it launches turnaround plan to “stabilise” the business following plummeting profits and sales at the luxury brand.
For the 26 weeks to September 28, 2024, Burberry posted an operating loss of £53m, down by 124% from a profit of £223m last year.
Burberry also reported a 22% decline in sales to £1.09bn, down from £1.4bn during the same period last year.
The luxury retailer also noted a 20% decline in comparable retail store sales as well as a 29% decline in wholesale revenue during the period.
In terms of outlook, Burberry said it is “acting with urgency to stabilise the business” and reposition the brand for future growth.
The business added it is “confident” it can improve performance and unveiled the launch of its new strategic turnaround plan ‘Burberry Forward’.
The new strategic plan hopes to “reignite brand desire” and “improve performance” for Burberry, and the brand said it believes it still has “all the attributes” to be a successful luxury business.
Burberry’s new strategy focuses on four key pillars including a focus on timeless British luxury, leading with outerwear, bolstering its culture and capabilities as well as aligning distribution with its product and customer strategy across stores and online.
Burberry said in a statement published to the London Stock Exchange this morning: “We recognise there is much to be done in the short term, and we are acting with urgency. We are confident we can get back to generating £3 billion in annual revenue over time, while rebuilding margins and driving strong cash generation.”
Burberry chief executive Joshua Schulman said: “My first few months have reaffirmed my belief that Burberry is an extraordinary luxury brand, quintessentially British, equal parts heritage and innovation.
“Burberry’s original purpose to design clothing that protects people from the weather is more relevant than ever. Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments.
“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 which have remained resilient throughout this period, and a strong presence in all key luxury markets.
“Now, we have a clear framework to reignite 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.”
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