Burberry’s Q3 FY25 Performance: A Mixed Bag
Revenue Takes a Hit
Global fashion powerhouse Burberry has reported a 7% decline in retail revenue for the third quarter of fiscal year 2025, with earnings dropping to £659m ($822.31m) from the previous year’s £706m. This marks a significant downturn, with comparable store sales decreasing by 4% during the same period.
Regional Performance: A Tale of Two Worlds
The quarter, which concluded on 28 December 2024, saw a disparate performance across regions. In the Americas, comparable store sales rose by 4%, driven by domestic expenditure. In contrast, Europe, the Middle East, and Africa experienced a 2% reduction in comparable store sales, with both local customers and tourists contributing to the decline.
Asia Pacific: A Region of Concern
The Asia Pacific region faced a steeper fall of 9%, with Mainland China’s sales down 7%. Despite this, Mainland Chinese customers’ spending remained consistent with the previous year, which contributed to Japan’s 4% increase in sales. However, South Asia Pacific and South Korea witnessed significant declines of 19% and 12%, respectively.
Product Performance: Outerwear and Scarves Shine
On a more positive note, outerwear and scarves maintained their strong performance globally. The contribution from space was positive at 1%, yet retail sales at constant exchange rates ultimately fell by 3%.
Looking Ahead: Uncertainty and Opportunity
Reflecting on the third-quarter outcomes and considering the uncertain economic landscape, Burberry anticipates that its second half results will likely just offset the first half adjusted operating loss. CEO Joshua Schulman remains optimistic, citing the success of recent campaigns such as “It’s Always Burberry Weather” and “Wrapped in Burberry,” which have resonated with luxury customers and improved brand desirability.
Transformation in Progress
Schulman emphasized that Burberry’s transformation is still in its early stages, with much work to be done. However, he believes that the brand’s strategic plan will deliver sustainable, profitable growth over time. The acceleration of core categories, such as outerwear and scarves, reinforces this conviction.
Trademark Infringement Lawsuit
In a separate development, Burberry initiated a lawsuit against value retailer B&M in December 2024, citing trademark infringement. This move underscores the brand’s commitment to protecting its intellectual property and maintaining its luxury image.
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