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Burberry (BRBY) earnings Q3 FY25

Shoppers walk into a Burberry store at Fashion Valley, an upscale mall on December 13, 2024 in San Diego, California.

Kevin Carter | Getty Images News | Getty Images

shares barbaric It jumped 16% on Friday after the company reported a lower-than-expected decline in sales in its fiscal third quarter, providing the first glimpse into CEO Joshua Shulman’s efforts to revamp the beleaguered British fashion house.

Comparable sales fell 4% in the three months to December. Analysts expected a 12% drop in the company’s consensus estimate.

It was last seen up 16.3% by 9:00 AM London time, with other luxury stocks following suit.

Total revenue over the festive shopping period was £659 million ($816 million), down 7% year-on-year at reported exchange rates.

Sales were subdued in the Asia-Pacific region and in the European, Middle East, India and Africa region – down 9% and 2%, respectively – but were up 4% in the Americas, reflecting broader Decreased consumer spending in the United States Across the luxury sector.

The company said it now “more likely than not” second-half results would broadly offset the adjusted operating loss in the first half.

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Schulman said he was “encouraged” by the customer response to Burberry’s latest campaign, but noted that the brand’s transformation was still in its early stages and that “there is still a lot to do.”

“Since launching Burberry Forward in November, we have moved at pace to drive our strategy to revive brand desire, improve our performance and drive long-term value creation,” he said in a statement out on Friday.

“The acceleration of our core categories reinforces our belief that Burberry has the greatest opportunity where we have the greatest authenticity and that our strategic plan will deliver sustainable, profitable growth over time.”

CFO Kate Ferry said the company had not set a time frame for an overhaul, but was hoping to return to the success of its recent past in the near term.

“This is where we intend to get back to. At this point, it’s early days,” she said in response to a question on CNBC during the earnings call.

Ferry also said the company may hope to benefit from “encouraging macro trends” boosting US consumption, but that was not currently in her forecast. It comes as analysts predicted Continued rise in US saleswith consumers benefiting from a stronger dollar, crypto gains and a market rally caused by President Donald Trump.

Shulman announced in November Urgent plans to ‘correct the course’ After a long period of poor performance for the company amid fading sales and a slew of management changes.

The plans—which Schulman said are aimed at returning the brand to its “original purpose”—sent Burberry shares to an all-time high, and the stock has since continued to track renewed investor confidence.

This announcement was delivered alongside Burberry’s results for the first half ending 28 September 2024, during which Sales contracted by 20% For the second quarter in a row.

Represents strategic reform Latest iteration From the 169-year-old retailer. Shulman join In July from Michael Kors, he became the brand’s fourth CEO in the past decade.

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2025-01-24 09:17:00

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