In its preliminary annual results, the British luxury brand reports a return to like-for-like sales growth since the second quarter, as well as a return to financial stability.
For its fiscal year ended March 28, Burberry returned to profitability with a profit of £21 million, following a loss of £75 million on stable revenue of £2.4 billion.
The British fashion house, which is celebrating its 170th anniversary this year, can take pride in an upturn fueled by double-digit growth in China and the United States as well as a renewed product appeal.
This improvement reflects the success of the Burberry Forward turnaround plan, which involves repositioning the brand’s image and streamlining both the product portfolio and the workforce, spearheaded by Joshua Schulman upon his appointment as CEO in 2024.
Encouraging Signs
During the presentation of preliminary results on May 14, management highlighted the improvement in sales quality, with a significant increase in gross margin (67.9%, up more than 530 basis points at constant exchange rates) and operating profit (£115 million, compared to a loss of £3 million a year earlier).
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Read more > Sportswear: The Next Phase of Burberry’s Forward Recovery Plan
Featured Image: Burberry’s collaboration with the Royal Collection Trust © Burberry
