The British luxury fashion house limited the damage during the last fiscal year, which ended in March, with a smaller-than-expected decline in revenue and loss. But under the leadership of its new CEO, it will expand its cost-cutting plan and plans to lay off up to 1,700 people worldwide.
Burberry ended the 2024-25 financial year, which closed on March 29, in better shape than expected. But the British luxury icon is not letting up in its efforts to turn around a situation that has nevertheless deteriorated in recent months.
In 2024-25, Burberry posted a net loss of £75 million, compared with a net profit of £270 million in the previous fiscal year. However, its adjusted operating profit was positive in the second half of the year at £67 million, while analysts had expected less, at £52 million. This enabled it to offset its £41 million loss in the first half.
Its revenue fell by 12% on a comparable basis to £2.46 billion. In the fourth quarter, it declined by 6%, while analysts had been expecting a decline of 7.78%.
New round of cost-cutting
This is not enough to make Joshua Schulman, Burberry’s CEO, lower his guard. Having taken the helm of the company last summer, the former Coach executive reacted very quickly to the deterioration in the group’s half-year results by announcing a plan to refocus on the group’s fundamentals, dubbed “Burberry Forward.”
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Read also > Burberry outperforms expectations in third quarter
Featured photo: © Burberry
