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Shoppers enter a Burberry store at Fashion Valley, an upscale shopping center on December 13, 2024 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
Burberry on Friday reported a deeper-than-expected decline in fiscal third-quarter sales, giving the first glimpse of CEO Joshua Schulman’s efforts to revamp the British fashion house.
Comparable sales fell 4% in the three months to December. Analysts had expected a 12% decline in the company’s consensus estimate.
Revenue during the festive shopping period was £659m ($816m), down 7% year-on-year at reported exchange rates.
Sales were down in the Asia Pacific and Europe, Middle East, India and Africa region — down 9% and 2%, respectively — but up 4% in the Americas, reflecting a broader. Recovery in US consumer spending throughout the luxury sector.
The company said it is now “likely” that second-half results will offset the first-half adjusted operating loss.
Schulman said he was “delighted” by the response from customers to Burberry’s latest campaigns, but noted that the brand’s transformation is in its early stages and “there is still a lot to do”.
“Since the launch of Burberry Forward in November, we have moved at pace to drive brand desire, improve our performance and advance our strategy to drive long-term value creation,” he said in a statement on Friday.
“The acceleration of our core categories reinforces our belief that Burberry has the most opportunity where we have the most authenticity and that our strategic plan will deliver sustainable and profitable growth over time.”
Schulman announced in November Urgent plans to “correct course”. after a long period of poor company performance amid declining sales and numerous management changes.
The plans – which Schulman said were intended to return the brand to its “original purpose” – sent Burberry shares to an all-time high, and shares have continued to rise on renewed investor confidence.
The announcement was made alongside Burberry’s results for the first half ending 28 September 2024, in which. sales are down 20% second quarter in a row.
It is marked by strategic innovation last iteration of the 169-year-old shopkeeper. Schulman join up in July by Michael Kors, becoming the fourth CEO of the brand in the last decade.
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