A Burberry store is seen in London, Britain, January 16, 2023. REUTERS
A view of logos displayed outside a Burberry store on New Bond Street in London, Britain, July 15, 2024. REUTERS
July 18 (Reuters) – Burberry (BRBY.L), said on Friday its comparable retail sales fell by a smaller-than-expected 1% in the first quarter ended June 28, in early signs of a recovery for the British luxury brand struggling with underperformance.
Known for its trademark trench coats and check pattern scarves, Burberry is in the early stages of a reboot under CEO Josh Schulman and is using the group’s British heritage appeal to win back customers wary of spending in an uncertain economy.
The company has issued several profit warnings in recent years, and as part of its turnaround drive since Schulman took over, it plans to cut a fifth of its global workforce, a radical cost-cutting measure that investors have welcomed.
“The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability give us conviction in the path ahead,” Schulman said in a statement, adding that the company’s Autumn 2025 collection was being “well received”.
Analysts had expected the group to report a 3% fall in comparable sales for the April-June quarter, according to a consensus compiled by Burberry.
Reporting by Pushkala Aripaka in Bengaluru and Helen Reid in London; Editing by Subhranshu Sahu
