A logo of equestrian knight devices on a flag outside the luxury boutique of Burberry Group PLC in London, United Kingdom, on Tuesday, May 13, 2025.
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Burberry On Wednesday he announced a series of organizational changes, amid continuous response efforts in the accumulated luxury house.
The company said the measures could lead to a “reduction in costs related to people that could affect around 1,700 roles worldwide” during the life of the program, which will be completed in 2027.
It is estimated that the movements, which include cost reduction through acquisition and real estate, lead to cost savings of £ 60 million ($ 79.9 million) and marks the last phase of the strategy of the CEO Joshua Schulman to the brand. Follow £ 40 million in cost reduction measures announced in November, taking a totalized cost savings to £ 100 million.
Employment cuts will affect about 20% of Burberry’s general personnel, with the majority established in office -based roles, as well as stores and in their factory in Castleford, England.
The shares jumped 15% at 12:31 p. M. London time.
Burberry sales fell a little less than expected in the fourth fiscal quarter, 6% less in three months until March. Analysts had anticipated a 7% decrease in an estimate of consensus compiled by the company.
For the fiscal year, sales fell 12% compared to an early decrease of 13%. The total revenues for the year were £ 2,461 billion ($ 3,273 billion), slightly ahead of an estimate of £ 2,451 billion.
Sales fell into all regions during the year and quarter, led by weakness in Asia-Pacific. Sales in the Americas, which had been a brilliant point of positive performance in the third quarter, went to a loss of 4% in the three months to finish the fiscal year.
Burberry had previously marked the United States as a brilliant point in the sales of the third quarter. However, the fashion house said on Wednesday that “the current macroconomic environment has become more uncertain in light or geopolitical developments.”
“While we are operating against a difficult macroconic backdrop and we are still in the early stages of our change, I am more optimistic than ever than Burberry’s best days are ahead and that we will offer sustainable growth. Profitable.
The company did not provide specific guidance on the estimated impact of American tariffs. However, it did not mark an “increase in geopolitical tension that leads to incremental tarife risks not mitigated compared to the central planning scenario” as a key down risk.
Burberry’s financial director, Kate Ferry, said the tariff impact was currently “very dynamic” and that the company would not be generated exactly in figures.
“We are a well -diversified business. The United States is really importing, but it is 19% of our business. Where rates end, we can answer,” Ferry said during a profit call on Wednesday.
In November, Schulman announced urgent plans to “correct the course” after a prolonged period of low yield for the company in a reduced sales and a series of management changes.
The strategic review marks the latest version of the 169 -year -old retailer. Schulman joined Michael Kors in July, becoming the fourth CEO of the brand in the last decade.
However, analysts never questioned the rhythm of Schulman’s agenda and suggested that it could spend some time before he says fruit.
“In a moment of extreme market turns Brby’s [Burberry’s] The finals suggest that the brand’s turn case is in a slow burning mode, “Jefferies wrote in a note.
They also noticed the limitations of Burberry’s re -enfocation in timeless and basic pieces, such as its exclusive trench, and the capacity of the creative director David Lee to innovate in that space.
“Burberry’s exclusive gabardine, although an indisputable icon poses a commercial challenge. As a product for life, it naturally limits the frequency of repeated purchases, unlike the items driven by the trend they bring to customers back season after season,” said Yanmei Tang, an analyst at Third Bridge.
