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LONDON - British luxury fashion house Burberry Group (OTC:BURBY) PLC revealed a significant drop in its annual financial performance for the year ended March 29, 2025. The company reported a 17% decrease in revenue at reported rates, plunging from £2,968 million in the previous year to £2,461 million. Adjusted operating profit plummeted by 94%, standing at £26 million compared to £418 million the year before.
The results reflect a challenging macroeconomic environment, with retail comparable store sales falling 12% year-over-year. Despite a tough first half, Burberry (LON:BRBY)’s strategic plan ’Burberry Forward’ has been implemented to reignite brand desire and drive long-term value creation. The second half of the year saw a recovery, with a £67 million profit offsetting a £41 million loss in the first half.
CEO Joshua Schulman remains optimistic about the brand’s future, citing an improvement in brand sentiment and the resilience of the outerwear and scarf categories. The company is initiating a cost savings programme expected to deliver £24 million in FY25 and unlock an additional £60 million of savings by FY27.
Burberry’s organisational changes aim to enhance collaboration, increase agility, and drive efficiency. However, these changes could impact around 1,700 roles globally. The associated one-off costs are expected to total around £80 million, with £29 million accounted for in FY25.
Looking ahead, Burberry anticipates the early stages of its turnaround to continue into FY26. The company plans to focus on brand desire and expects to see the impact of its actions build throughout the year. Despite uncertainties in the global market, Burberry is positioning itself for a return to sustainable, profitable growth.
The information in this article is based on a press release statement from Burberry Group PLC.
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