Latest news with #fashionhouse
News.com.au
15-05-2025
- Business
- News.com.au
‘Simply not sustainable': Burberry warns 1700 jobs at risk after annual loss
Burberry could shed almost a fifth of its global workforce by 2027, after the embattled fashion house suffered a massive annual net loss. The British label, founded in 1856 and beloved for its distinctive camel, red and black chequered pattern, is in the midst of a turnaround plan to help boost sales and cut costs as the global luxury sector struggles with weak consumer demand. Burberry's net loss stood at £75 million in the 12 months to the end of March, it said in a statement, compared to a profit of £270m one year earlier. Revenue slid 17 per cent to £2.46 billion. Further cost-saving measures were announced on Wednesday, targeting additional savings of £60m in the next two years, which would impact around 18 per cent of its workforce, or 1700 people. 'While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead,' chief executive Joshua Schulman said. The bulk of the cuts will affect office-based roles globally, with the brand's UK headquarters to bear the brunt. Retail positions will also be affected, while the night shift Burberry's factory in Castleford, West Yorkshire – where its iconic trench coats are produced – will be axed, resulting in roughly 150 job losses. 'For a long time we have had overcapacity at that facility, and that is simply not sustainable,' Mr Schulman said. 'But I want to be very clear that we are making this change to safeguard our UK manufacturing, and in fact we will be making a significant investment to renovate this factory in the second half. 'Our intention is that we make our British heritage raincoats in the UK for many generations to come.' Mr Schulman has vowed to win back customers with a renewed focus on outerwear, which outperformed its other products, according to the group's earnings statement. 'Our customers are responding to our timeless British luxury brand expression,' he said. 'With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our autumn and winter collections arrive in store. The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity. 'While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time.' Burberry did warn, however, that the economic environment has become 'more uncertain in light of geopolitical developments', as the fallout from US tariffs threatens to dampen consumer confidence. The news of cost-cutting plans and a better-than-expected fourth quarter sent shares in Burberry soaring more than eight per cent in morning deals on London's FTSE 250 index. Burberry exited London's top-tier FTSE 100 index in September after 15 years, with analysts citing strategic mistakes and weak demand from China. 'Without question, there is some momentum building,' said Richard Hunter, head of markets at Interactive Investor. 'Burberry will want to consign the past year to the history books as soon as possible … but the new strategy will take time to filter through.' Despite Wednesday's surge, the group's share price remains down around 25 per cent over the past 12 months. 'The refreshed fashion strategy … is helping to stem the decline, but patience is wearing thin,' said Susannah Streeter, head of money and markets at Hargreaves Lansdown. Burberry 'doesn't have the same pull of its ultra-luxe rivals, and aspirational shoppers are more cautious, without the deep pockets of wealth to keep them insulated', she added. The Asia-Pacific region saw Burberry's largest decline in comparable store sales in the reported year, with turnover in mainland China falling 15 per cent. China is the world's biggest spender in the luxury sector, accounting for half of global sales.
Times
14-05-2025
- Business
- Times
Burberry to cut almost a fifth of workforce in savings drive
Around 1,700 jobs could be lost at Burberry, the British fashion house has warned, as a downturn in the global luxury market pushed it to a loss. Joshua Schulman, the chief executive who was appointed in July to turn around the business, said that the cuts — which amount to up to 18 per cent of its global workforce — would be focused on the group's head offices, which are led by London, over the next two years. Headcount would also be reduced by reorganising staff rotas and dropping the night shift at its factory in Castleford, west Yorkshire, as part of a cost-cutting drive aimed at making an additional £60 million in savings and reviving the company's profitability. The cost reductions, which are being
CNN
14-05-2025
- Business
- CNN
Burberry plans to cut almost one-fifth of its global workforce
Burberry is aiming to slash 18% of its global workforce by 2027 as it looks for ways to cut costs and revive its ailing business. The British luxury fashion house said Wednesday that around 1,700 jobs were at risk as it reported a loss of £3 million ($4 million) during its latest financial year. Revenue also fell sharply in the 12 months to March 29, the company said in its preliminary results. Like other high-end fashion brands, Burberry has grappled with a global slowdown in luxury spending in recent years, with its stock slumping 66% since an all-time high hit in April 2023. The planned job cuts are part of changes aimed at increasing 'agility, driving efficiency and profitability' at the 169-year-old company, including making other savings. By the 2027 financial year, Burberry said, it hopes to unlock £100 million ($133 million) in annual savings. Burberry's stock jumped more than 9% Wednesday morning following the results. The company noted in its results that 'the current macroeconomic environment has become more uncertain in light of geopolitical developments' — a likely allusion to US President Donald Trump's trade war, which has made a number of products more expensive and consumers more cautious. Last year, luxury wear veteran Joshua Schulman took over as Burberry's chief executive to help the company revive its fortunes. He said in a statement Wednesday that Burberry is 'operating against a difficult macroeconomic backdrop' and is 'still in the early stages of (its) turnaround.' Part of that turnaround has been a renewed focus on the products Burberry is best known for — trench coats and scarves — as well as bringing down prices for bags and shoes. 'Burberry is dealing with difficult conditions in the mid-market luxury sector,' Susannah Streeter, a senior analyst at investment platform Hargreaves Lansdown, wrote in a note Wednesday. 'It doesn't have the same pull of its ultra-luxe rivals, and aspirational shoppers are more cautious, without the deep pockets of wealth to keep them insulated.' Jordan Valinsky contributed reporting.
CNN
14-05-2025
- Business
- CNN
Burberry plans to cut almost one-fifth of its global workforce
Burberry is aiming to slash 18% of its global workforce by 2027 as it looks for ways to cut costs and revive its ailing business. The British luxury fashion house said Wednesday that around 1,700 jobs were at risk as it reported a loss of £3 million ($4 million) during its latest financial year. Revenue also fell sharply in the 12 months to March 29, the company said in its preliminary results. Like other high-end fashion brands, Burberry has grappled with a global slowdown in luxury spending in recent years, with its stock slumping 66% since an all-time high hit in April 2023. The planned job cuts are part of changes aimed at increasing 'agility, driving efficiency and profitability' at the 169-year-old company, including making other savings. By the 2027 financial year, Burberry said, it hopes to unlock £100 million ($133 million) in annual savings. Burberry's stock jumped more than 9% Wednesday morning following the results. The company noted in its results that 'the current macroeconomic environment has become more uncertain in light of geopolitical developments' — a likely allusion to US President Donald Trump's trade war, which has made a number of products more expensive and consumers more cautious. Last year, luxury wear veteran Joshua Schulman took over as Burberry's chief executive to help the company revive its fortunes. He said in a statement Wednesday that Burberry is 'operating against a difficult macroeconomic backdrop' and is 'still in the early stages of (its) turnaround.' Part of that turnaround has been a renewed focus on the products Burberry is best known for — trench coats and scarves — as well as bringing down prices for bags and shoes. 'Burberry is dealing with difficult conditions in the mid-market luxury sector,' Susannah Streeter, a senior analyst at investment platform Hargreaves Lansdown, wrote in a note Wednesday. 'It doesn't have the same pull of its ultra-luxe rivals, and aspirational shoppers are more cautious, without the deep pockets of wealth to keep them insulated.' Jordan Valinsky contributed reporting.
Times
10-05-2025
- Business
- Times
Shadow of tariffs over Burberry's brave new world
Burberry may have found its feet again over Christmas but investors are bracing themselves for a more downbeat outlook when the luxury brand updates the City next week. Earlier this year the British fashion house, best known for its trench coats and scarves, reported a better than expected performance in the third quarter to December 28, reporting a 4 per cent drop in like-for-like sales. This was far better than the 12 per cent fall analysts had forecast. The improvement was led by a bounce in the US, where shoppers returned to luxury shops amid falling inflation and post-election optimism. • Watch: How Burberry's check survived fashion's biggest identity crisis Sales in New York were particularly strong after Burberry reopened its 57th Street shop and
