Latest news with #JoshSchulman
Yahoo
2 days ago
- Business
- Yahoo
HSBC Heaps Praise on Burberry, Says Focus on Outerwear, Authenticity Is Working
— HSBC has gone bullish on Burberry with a glowing report about the company's prospects under chief executive officer Josh Schulman, who's been in the job for little more than a year. 'The question for us is not whether Burberry will come back, but the magnitude to which it will, and how much investors are ready to pay for it,' the bank said in a report on Tuesday, two days after Burberry posted promising first-quarter results. More from WWD Queen Elizabeth's Wardrobe, From Birth Through the Jubilee Years, Will Go on Display in London in 2026 Dior Lucky Pop-up Opens at Harrods With a Shower of Stars and Four-leaf Clovers With Sales Improving Worldwide, CEO Josh Schulman Is Bullish on the Future of Burberry As reported, in the three months to June 30 Burberry stemmed the double-digit sales declines of past months, and outstripped analysts' expectations for growth. The British brand reported 433 million pounds in retail revenue, with comparable store sales down 1 percent versus 21 percent in the corresponding period last year. HSBC called its report 'Knight Fever,' in reference to Burberry's historic logo and the Bee Gees disco hit, and said the brand 'has suddenly gone onto the radar of many consumers who may have forgotten about [it], and others who are just starting to discover it.' The bank added that with the impetus of a renewed management team and actions taken by Schulman, 'product initiatives, media campaigns and merchandising actions have landed well. Is Burberry booming yet? Not really, as the bulk of refreshed products should start to move the needle significantly' in the second fiscal half, which ends in March 2026. The bank also believes Burberry's 1 percent decline in like-for-like sales will look good in comparison to what fashion and luxury competitors serve up in the coming weeks when they report quarterly earnings. 'There are clear signs of life. Naysayers wondering if the brand could ever come back already have a hint, and should get proof shortly, as we believe growth should be visible as early as the current quarter,' HSBC said. The bank also praised Schulman's focus on brand 'authenticity,' and said competitors should take a closer look at his strategy. 'As premium European brands struggle from a lack of creativity and greedflation — prices are difficult to justify — they have undoubtedly lost in authenticity and appeal. Burberry used its outlet network swiftly to help move products from an overpriced, handbag-focused approach to go back to basics [that are] well-priced, authentic, outerwear-focused,' HSBC said. It added that Burberry, Coach, Ralph Lauren and Longchamp 'are seemingly benefiting greatly from the white space created by premium luxury brands being out of reach for many aspirational consumers.' HSBC also noted that Burberry's share price is up 75 percent since Schulman's arrival, and added it expects 'upward revisions' on the shares from other banks. Following the HSBC report on Tuesday morning, Burberry's shares were broadly flat at 12.99 pounds. HSBC isn't the only financial institution that's upbeat on Burberry. Earlier this week, Wan Nurhayati, equity analyst at CFRA Research, said: 'We continue to see potential recovery [in fiscal 2025-26] from the turnaround strategy and expect the market to focus on the progress of 'Burberry Forward,' including the decision to focus back on outerwear and cost savings.' Nurhayati added that Burberry has committed to deliver 'better margins with continued focus on simplification and productivity, while remaining on track to deliver 80 million pounds in annualized savings' by the end of the current fiscal year. Best of WWD What the Highest-paid CEOs at U.S. Fashion and Retail Companies Make The Definitive Timeline for Sean 'Diddy' Combs' Sean John Fashion Brand: Lawsuits, Runway Shows and Who Owns It Now Confidence Holds Up, But How Much Can Consumers Take? 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
Express Tribune
6 days ago
- Business
- Express Tribune
Burberry finds footing with 'Britishness' and bold cuts
Burberry's sales fell by a less-than-expected 1 per cent in the first quarter, as it benefited in the Americas and Europe from clearer brand positioning leaning on its British heritage, the luxury group said on Friday. Shares in Burberry, which have more than doubled since September, rose 4 per centin early trade. Known for its trench coats and check pattern scarves, Burberry is using its British heritage to win back customers under the leadership of CEO Josh Schulman, who took over exactly a year ago, and the company said its summer campaigns had broadened its appeal. Highgrove, inspired by the garden of the private residence of King Charles, resonated with luxury customers, Schulman said, while Festival, based on music festivals like Glastonbury and featuring bucket hats and boots, targetted young customers. Comparable sales returned to growth in Europe, the company said, while trading in the Americas strengthened. Sales fell in China and in the rest of Asia, but the rate of decline was around half that seen in the previous quarter. "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, adding that the autumn collection was being "well received". Burberry said it was seeing reduced activity from tourists, but stronger demand from new and existing customers helped offset the impact. "We are really pleased with the sequential improvement that we are seeing across the regions and particularly the shift to positive comps in America and EMEA," he told reporters. "It's a tough macro out there and we're taking things step by step but we are optimistic about the quarters ahead." Burberry, which has issued several profit warnings in recent years, is cutting a fifth of its global workforce, a radical cost-cutting measure that investors have welcomed. The 1 per cent drop in overall comparable retail sales in the first quarter, which ended on June 28, beat analysts' forecasts for a 3 per cent decline in a company-compiled consensus, and improved on a 6 per cent fall in the previous quarter. Analysts at Citi said the brand had reported its third consecutive quarter of improvement since Schulman launched its new strategy last November, implying comparable sales could turn positive in the current quarter. "In a quarter marked by further macro and geopolitical pressures and weaker tourist spending in Europe and Japan, Burberry has likely held up better than peers quarter-on-quarter," they said.
Hypebeast
7 days ago
- Business
- Hypebeast
Burberry Beat Analysts' Expectations in Q1 FY2026
Burberry'sQ1 FY2026 sales report is looking better than expected. The Daniel Lee-led heritage brand beat analysts' expectations, reporting revenues of $580.9 million USD in the three-month period. The label's sales were still down by 2% when compared to the year prior (analysts forecasted a 3% decline); however, the figure marked a significant improvement from Burberry's 6% decline in sales during the previous quarter. Following the report's release, shares in the brand climbed by more than 4%. From a regional standpoint, Burberry saw sales increase in the Americas and Europe, though sales fell in Asia, where the label earns a sizable portion of its business. '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,' said CEO Josh Schulman, who started at Burberry one year ago, perReuters. 'We are really pleased with the sequential improvement that we are seeing across the regions and particularly the shift to positive comps in America and EMEA.' 'It's a tough macro out there and we're taking things step by step but we are optimistic about the quarters ahead,' he added. See Burberry's Q1 FY2026 finacial reporthere.
Yahoo
7 days ago
- Business
- Yahoo
With Sales Improving Worldwide, CEO Josh Schulman Is Bullish on the Future of Burberry
LONDON – From colorful scarf bars in stores to campaigns featuring the Jagger clan and VVIP events stretching from Highgrove to the Flamingo Estate, Burberry's charm offensive is working, with sales improving worldwide despite the tough environment for luxury. The company has successfully stemmed the double-digit sales declines of the past year and outstripped growth expectations for the first fiscal quarter. More from WWD Nuova Accademia di Belle Arti to Open a Campus in London Priya Nair Returns to India as CEO, Managing Director of Hindustan Unilever Limited Topshop to Stage Fashion Show in London After Seven-year Hiatus In the three months to June 30, it reported 433 million pounds in retail revenue, a 6 percent drop at reported exchange, and a 2 percent decline at constant rates. Comparable store sales were down 1 percent, compared with analysts' projections of a 3 percent decline. In the corresponding period last year, comparable store sales were down 21 percent. Perhaps no one is more surprised than chief executive officer Josh Schulman who joined Burberry last July. 'If you had asked me 12 months ago where we would be today, I wouldn't have imagined the amount of progress that this exceptional team has been making,' said Schulman, adding that brand desirability is also on the rise due to Burberry's focus on 'timeless British luxury.' He added: 'It's early days, and it's a tough macro, but we are really starting to see the potential of what lies ahead. We're taking things step by step, but we are optimistic about the quarters ahead and optimistic about the business in general.' Schulman, who has been broadening the price points and appeal of the brand, said the metric he's 'super excited' about is conversion, the ability to turn window shoppers into paying customers. 'Our conversion is up across the world — very significantly — and we're doing so in a tough luxury market,' he said, adding that local customers have been outspending tourists worldwide. The positive news caps a tough year for Schulman, who is hoping to restore Burberry to its golden days of 3 billion pounds in revenue and an operating margin in the high teens. As reported in May, the company unveiled an enriched cost-savings plan that could see 20 percent of its workforce eliminated by 2027. The plan is aimed at unlocking 100 million pounds by fiscal 2027, in addition to 40 million pounds revealed last year. Burberry plans to cut mainly office-based jobs, and will reorganize the schedules of its shop floor staff so they are working during peak traffic hours. The company is also eliminating the night shift at its factory in Castleford, Yorkshire, where the signature gabardine trenchcoats are made. Around 25 percent of staff will be impacted. The turnaround is taking shape, although Schulman and analysts said it's still early days. Bernstein called Burberry's first-quarter performance 'decent, particularly in the context where French and Italian peers are expected to shrink by negative' high-single-digit to double digit, when they report earnings later this month. 'More importantly, company commentary indicates early signs of brand reignition,' said Bernstein, adding that 'the sequential improvement in same-store sales — against a most difficult environment — suggest that things are starting to work.' The bank also believes that Burberry has a 'more realistic pricing approach in leather goods,' which should help fuel growth going forward. Deutsche Bank noted that Burberry's shares are up 27 percent so far this year, 'significantly outperforming both larger peers [including LVMH and Hermès] and turnaround peers [Kering and Ferragamo].' Citi looked farther ahead, speculating that Burberry's underlying retail sales 'could turn positive' in the second fiscal quarter for the first time in two years. The 'execution is on track, with new [fall and spring] collections and a wider pricing architecture delivered to stores over the next three quarters to reignite brand desirability,' Citi said. Friday's first-quarter news sent the share price up more than 6 percent to close at 13.27 pounds. There is even talk that Burberry could rejoin the FTSE 100 index when the London Stock Exchange undertakes its next quarterly review in September. Burberry fell out of the index, which includes the biggest companies by market capitalization, last September following a 50 percent decline in its share price in the months leading up to the review. In the first three months, Schulman said growth came from 'sequential improvement' across all regions, thanks chiefly to more enthusiastic local customers. The Americas rose 4 percent, followed by EMEIA, or Europe, the Middle East, India and Africa region, which rose 1 percent. Greater China was down 5 percent, while Asia Pacific fell 4 percent. Kate Ferry, Burberry's chief financial officer, said the performance in the Americas, which represents around 19 percent of overall sales, was particularly interesting. 'We actually saw new customer numbers growing in the region, as well as returning customers. We're seeing a much broader range of customers in America, too, which is good,' she said. She and Schulman stressed that Greater China, which represents 30 percent of sales, has been showing quarter-on-quarter improvement, with sales coming from locals rather than tourists, in line with the overall trends in Asia-Pacific. Ferry added that 'traffic in the luxury market is challenging everywhere, and tourism is certainly down, but our team in China are really encouraged by all they are seeing. Overall, it's sequentially improving and it remains a really important market for us. We are really, really excited about the future of China,' she said. Worldwide, bestsellers in the three months included outerwear, particularly lightweight jackets, and items with check trims or with the Burberry Prorsum Knight stamp. In the shoe category, wellies and pool slides also had a strong response from customers as well, Schulman said. Summer products have been selling at places including The Newt, a 2,000-acre working farm and luxury hotel and spa in Somerset, England. Burberry created a custom check pattern for the hotel as part of a summer partnership, and has been selling swimwear, outerwear, hats, scarves and umbrellas at the boutique. Burberry has also done a takeover of The Standard in Ibiza, whipping up its signature check in yellow for parasols, loungers and cushions. There's also a big Burberry logo at the bottom of the swimming pool. The brand is working with The Standard's rooftop bar and restaurant, doing weekly Burberry-curated cocktail evenings, soundtracked by guest DJs spinning from a custom-built booth. For the VVIPs there were trips to the gardens at Highgrove, King Charles's private home in Gloucestershire, following a collaboration with the estate on a 28-piece capsule collection. In the U.S., Burberry invited big-spending customers to the launch of the Highgrove collection at the Flamingo Estate, the working farm turned high-end lifestyle destination in Los Angeles. As the glamorous campaigns and events continue to roll out, there is steady work going on behind the scenes, and in the Burberry C-suites worldwide. As reported in May, Schulman decided not to fill the role of chief commercial officer and to do the job himself, with Burberry's regional presidents reporting directly to him. On Friday, along with the first-quarter announcement, Burberry said the four regional presidents will join the executive committee and take part in relevant decision-making, strategy and operations. They are Claudia Kim in Asia-Pacific; Frank van Loon in EMEIA; Josie Zhang, in Greater China, and Laura Dubin-Wander, in the Americas. Schulman said the move is meant to align leadership and decision-making more closely with the end-customer. Schulman said the regional presidents' 'market insights and deep customer knowledge are invaluable, and I look forward to continuing to work closely with them to drive' the Burberry Forward strategy. Looking ahead to the full 2025-26 year, Schulman said the transformation is not like 'turning on a light switch' and will take time. 'It is a multiyear plan with the aim of re-grounding the brand in a timeless British luxury expression. There's so much storytelling that we can do, and we will continue to execute our product strategy, leading with outerwear, earning our authority in other categories, and getting the product and marketing right to appeal to the broad universe of luxury customers.' Although the company did not comment on the second quarter performance, it said the plan was to prioritize investment and deliver margin improvement 'with a continued focus on simplification, productivity and cash flow. We remain confident that we are positioning the business for a return to sustainable, profitable growth.' Best of WWD What the Highest-paid CEOs at U.S. Fashion and Retail Companies Make The Definitive Timeline for Sean 'Diddy' Combs' Sean John Fashion Brand: Lawsuits, Runway Shows and Who Owns It Now Confidence Holds Up, But How Much Can Consumers Take?
Yahoo
7 days ago
- Business
- Yahoo
Burberry Stems Sales Declines in First Quarter as Schulman's Strategy Takes Hold
This story was updated at 2:00 p.m. ET on Friday, July 18. — What a difference a year makes. More from WWD Nuova Accademia di Belle Arti to Open a Campus in London Priya Nair Returns to India as CEO, Managing Director of Hindustan Unilever Limited Topshop to Stage Fashion Show in London After Seven-year Hiatus Burberry's focus on simplification, productivity and cash flow helped to narrow the double-digit sales declines of past months, with the company reporting 433 million pounds in retail revenue, a 6 percent drop at reported exchange, and a 2 percent decline at constant rates in the first fiscal quarter. That compares with double-digit declines last summer, when the board brought in chief executive officer Josh Schulman to steady the ship, and initiate a turnaround. Schulman's approach is working, and investors responded with gusto, sending the share price up more than 6 percent to close at 13.27 pounds on Friday, July 18. Comparable store sales were down 1 percent compared with 21 percent in the corresponding period last year, with improvement across all regions, and the Americas and EMEIA region showing positive growth. The Americas region was up 4 percent, followed by EMEIA, or Europe, the Middle East, India and Africa, which rose 1 percent. Greater China was down 5 percent, while Asia-Pacific fell 4 percent in the three months to June 30. The results outstripped expectations, with analysts projecting a 3 percent decline in comparable store sales. Deutsche Bank noted that Burberry shares are up 27 percent so far this year, 'significantly outperforming both larger peers [including LVMH and Hermès] and turnaround peers [Kering and Ferragamo].' The bank added that 'further material growth henceforth will depend largely on the company's ability to replicate the success of its core categories onto noncore segments to drive growth and profitability.' Citi looked farther ahead, speculating that underlying retail sales 'could turn positive' in the second fiscal quarter for the first time in two years. The 'execution is on track, with new [fall and spring] collections and a wider pricing architecture delivered to stores over the next three quarters to reignite brand desirability,' Citi said. Bernstein said 'the sequential improvement in same store sales — against a most difficult environment — suggest that things are starting to work.' The bank added that it expects further improvements in Burberry's second half 'as the full impact of the new marketing vision will become apparent with the fall collection.' It believes that Burberry also has a 'more realistic pricing approach in leather goods,' which should help fuel growth going forward. Schulman said that over the past 12 months, Burberry has moved from stabilizing the business to driving Burberry Forward, its growth plan, with confidence. 'The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead. Our autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores,' he said. Schulman added: 'Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.' Looking ahead to the full 2025-26 year, Burberry stressed that it's still in the early stages of the turnaround, which has been taking place in a macroeconomic environment that remains uncertain. 'Our focus this year is to build on the early progress we have made in reigniting brand desire as a key requisite to growing the top line,' the company said, adding that in the first half, it will continue to prioritize investment. It plans to deliver margin improvement 'with a continued focus on simplification, productivity and cash flow. We remain confident that we are positioning the business for a return to sustainable, profitable growth.' Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange
