FILE PHOTO: Burberry wallets are seen on display at a Burberry store in Beijing.
Credit: Reuters
London: British luxury brand Burberry on Wednesday (May 14) said it would cut 1,700 jobs globally as it tries to cut costs and turn the business around, while adjusted operating profit for its full year ending March 29 beat expectations.
Burberry, in the early stages of a turnaround plan led by CEO Joshua Schulman, narrowly avoided a loss for its 2025 financial year with an adjusted operating profit of 26 million pounds ($34.55 million), beating analysts' estimate of 11 million pounds.
Schulman took over last year and shifted Burberry's strategy and marketing to focus more on trench coats and scarves after the brand was bruised by product missteps, excessive price hikes, and a broader luxury downturn.
Fourth-quarter comparable sales were down 6%, better than analysts' average forecast for a seven per cent decline.
"With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store," Schulman said in a statement.
Sales in the Americas and the Europe, Middle East, India and Africa region both declined by 4 per cent compared with last year, while sales in Asia Pacific were down 9 per cent.
A worse outlook for US consumer spending may pose a challenge for Schulman's focus on American shoppers to boost Burberry sales.
Burberry did not address US tariffs specifically in the statement but said "geopolitical developments" were making the economy more uncertain, and did not give specific targets for its 2026 financial year.