Burberry to Cut 1,700 Jobs in Turnaround Push
Burberry, the British fashion brand known for its trench coats and signature checkered print, said on Wednesday that it would slash up to 1,700 jobs in a bid to cut costs as it tries to return to profit after a period of poor sales in an increasingly volatile luxury sector.
The job cuts, which represent 18 percent of the company's global work force, are part of larger organizational changes that are expected to save the company 60 million pounds. The measures come amid global uncertainty that increased after President Trump imposed tariffs on America's top trading partners.
'The current macroeconomic environment has become more uncertain in light of geopolitical developments,' the company said in a statement.
The company announced the cost-cutting strategy after reporting a 117 percent drop in its annual pretax profits in the 2025 financial year, which ended March 29. Operating losses were £3 million, or $4 million, down from a £418 million, or $558 million, profit the year prior. Revenue was down 17 percent to £2.5 billion, or $3.4 billion.
Burberry has struggled in recent years after managerial and designer changes, a drive to increase prices that fell flat with customers and the wider global slowdown of luxury consumption, particularly in China, its biggest overseas market.
The company said the cost-cutting efforts, combined with earlier measures, could lead to planned savings of up to £100 million, or $133 million, by 2027. Most job losses will hit corporate offices but could also affect retail stores and factories.
Shares jumped by as much as 10 percent on the news after the market opened in London.
The company's chief executive, Joshua Shulman, joined Burberry from its American rival, Coach, last year to lead a turnaround effort. He said in a statement on Wednesday that he was 'more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time,' but added that the last financial year had been challenging.
Charlie Huggins, a manager at the investment firm Wealth Club, noted that a 6 percent decline in same-store sales in the fourth quarter was 'a marked improvement' and suggested that 'the strategic plan to reignite the brand may be gaining early traction.'
'But fiscal year 2025 was still an annus horribilis for Burberry, ' he said. 'Almost everything that could go wrong did. Luxury consumers across the globe significantly tightened their belts hitting the whole luxury sector. But Burberry has seen more impact than most.'
Other groups that noted earnings declines recently include LVMH, owner of Louis Vuitton and Dior, and Kering, which owns brands like Gucci and Saint Laurent.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
an hour ago
- Business Insider
‘Time to Take a Pause,' Says Investor About Nvidia Stock
Nvidia (NASDAQ:NVDA) stock has roared back to life over the past two months, following a decidedly uncharacteristic drop earlier in the year. Shares have now climbed roughly 50% since hitting a post-Liberation Day low, driven by easing trade tensions, strong AI demand, and another impressive earnings report last month. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter That rebound comes despite several headwinds earlier in the year. The U.S.-China trade spat and fears of a broader pullback in AI-related capital expenditures had weighed heavily on investor sentiment. In particular, a targeted export restriction from the Trump administration on Nvidia's H20 GPUs resulted in a $4.5 billion hit during the last quarter. Still, it is hard to argue with Nvidia's stellar performance during Q1 Fiscal 2026, during which the company delivered record revenues of $44 billion, a year-over-year surge of 69%. The all-important data center segment grew at an even faster clip of 73%. While acknowledging the healthy earnings and NVDA's recovering share price, investor Johnny Zhang is not convinced that all the geopolitical hiccups are in the rearview mirror. 'I believe the 2H 2025 could bring more uncertainty, as the lagging effects of Trump's tariff policy and any setbacks on potential deals with China could create new volatility in the market,' explains the investor. Those concerns are not just theoretical. Zhang points to the unresolved H20 issue, stemming from U.S. export restrictions, as a key example. Nvidia is now expected to take an $8 billion inventory write-off as a result, and its margins are likely to decline further on a sequential basis. More broadly, the company has acknowledged it could forfeit access to a $50 billion total addressable market in China if those restrictions remain in place. Moreover, while Zhang believes that Nvidia will be able to navigate any economic slowdowns, the investor thinks there is a high possibility that the impact of the Trump tariffs will be felt during the latter part of the year. Against that backdrop, Zhang emphasizes that the recent rally in Nvidia's stock may not be sustainable without renewed visibility. He notes that further upside will hinge largely on AI spending trends in 2026, an outlook he calls 'highly uncertain.' In short, while Nvidia's fundamentals remain strong, its near-term growth path is anything but guaranteed. 'Chasing the stock's rally from here seems less compelling to me,' concludes Zhang, who gives NVDA a Hold (i.e. Neutral) rating. (To watch Zhang's track record, click here) Wall Street has a decidedly rosier view of NVDA. With 35 Buy, 4 Hold, and 1 Sell recommendations, NVDA continues to enjoy a Strong Buy consensus rating. Its 12-month average price target of $172.36 implies an upside north of 20%. (See )
Yahoo
an hour ago
- Yahoo
EMV Capital Full Year 2024 Earnings: UK£0.13 loss per share (vs UK£0.11 loss in FY 2023)
Revenue: UK£2.45m (up 70% from FY 2023). Net loss: UK£3.06m (loss widened by 16% from FY 2023). UK£0.13 loss per share (further deteriorated from UK£0.11 loss in FY 2023). This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. All figures shown in the chart above are for the trailing 12 month (TTM) period The primary driver behind last 12 months revenue was the United Kingdom segment contributing a total revenue of UK£2.08m (85% of total revenue). The largest operating expense was General & Administrative costs, amounting to UK£4.07m (79% of total expenses). Explore how EMVC's revenue and expenses shape its earnings. Looking ahead, revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 6.1% growth forecast for the Medical Equipment industry in the United Kingdom. Performance of the British Medical Equipment industry. The company's shares are up 11% from a week ago. You still need to take note of risks, for example - EMV Capital has 4 warning signs (and 2 which are concerning) we think you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Boston Globe
2 hours ago
- Boston Globe
Canada commits billions in military spending to meet NATO target
But even if Canada is able to finally hit the 2 percent threshold, that is not likely to be enough to satisfy the United States or other NATO allies. Mark Rutte, NATO's secretary general, speaking in London on Monday, called on the alliance's members to make a 'quantum leap in our collective defense' by committing to significantly higher spending targets. Rutte wants members to commit to spending 5 percent of their gross domestic products on military and defense-related activities. Trump has called for a similar spending target. Advertisement Proposals for increased spending are likely to dominate the NATO summit meeting in The Hague this month, though Rutte has not set a timeline for his increased spending plan. Carney, speaking in Toronto, said that new geopolitical threats, advances in technology, and the fraying of Canada's alliance with the United States demanded an accelerated spending schedule. 'We stood shoulder to shoulder with the Americans throughout the Cold War and in the decades that followed, as the United States played a dominant role on the world stage,' he said. 'Today, that dominance is a thing of the past.' Advertisement 'It is time for Canada to chart its own path,' he added, 'and to assert itself on the international stage.' While Carney promised to increase spending by billions of Canadian dollars, he did not specify where the funds would come from. Government officials spoke mostly in broad terms about how the money would be used. Canada's economy is heavily dependent on exports to the United States, and Trump's tariffs have targeted key industries, including autos and steel. Some economists have warned that Canada could face a recession if the tariffs persist. Carney also said the country would no longer rely as extensively on American defense contractors to supply its armed forces, underscoring Canada's strained relations with the United States and focus on shifting away from its neighbor. The Canadian government said it would immediately add 9.3 billion Canadian dollars (about $6.8 billion) to its defense budget. That will raise total defense-related spending this year to CA$62.7 billion, slightly higher than the 2 percent NATO target. To get there, the government included CA$2.5 billion in spending related to 'defense and security' for other departments, including the Canadian coast guard, an unarmed civilian agency which is under the department of fisheries. Carney's spending pledge was welcomed by defense analysts. 'This is a long-overdue announcement,' said Margaret McCuaig-Johnston, a senior fellow at the Graduate School of Public and International Affairs at the University of Ottawa. 'This significant commitment is remarkable given how quickly they're going to have to move to make 2 percent by the end of the fiscal year.' But, she added, Carney will have to add further budget increases to fund all of the programs he is promising. Advertisement Carney laid out a long shopping list for the military, including 'new submarines, aircraft, ships, armed vehicles, and artillery.' He also said the military would add drones and sensors to monitor the seafloor in the Arctic, a vast region of the country that is becoming a source of competition among global powers such as Russia and China. But Canadian officials said that this year most of the spending would go toward things like increasing the pay and the benefits of armed forces members to help ease a severe recruitment crisis, and repairing broken equipment. Carney also said that money would be directed toward much-needed improvements, noting that three of the Royal Canadian Navy's four diesel submarines were not seaworthy. 'We will repair and maintain our ships, our aircraft, and infrastructure that for too long we allowed to rust and deteriorate,' the prime minister said. Other spending will focus on artificial intelligence and computer systems, as well as ammunition production within the country. Carney also said that Canada would look to buy more goods domestically or from allies other than the United States to equip its military. 'We should no longer send three-quarters of our defense capital spending to America,' he said. Carney said Monday that details about how the country's military needs would be financed would be revealed when a budget was released in the fall. 'Our fundamental goal in all of this is to protect Canadians,' he told reporters, 'not to satisfy NATO accountants.' This article originally appeared in
