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Burberry has seen its revenues drop by 7% year-on-year to £659m for the 13 weeks ended 28 December 2024.
The group’s comparable store sales were also down 4% in the period. Regionally, EMEIA and Asia Pacific saw a 2% and 9% decline respectively.
EMEIA’s sales were impacted by a decline in both locals and tourists. Globally, the EMEIA customer group was flat.
On the other hand, Asia Pacific sales dropped because of a 7% decline in Mainland China. Globally, sales to the mainland Chinese customer were flat versus last year, but sales were up 4% in Japan.
However, Burberry’s sales in America grew by 4%. This was boosted by local spend. Globally, the Americas customer was in line with the regional performance. The group was encouraged by performance in the New York area where it concentrated local marketing efforts after reopening its refurbished 57th St Store.
In addition, by product, outerwear and scarves continued to “outperform” globally.
In the third quarter, the group initiated brand reset with 360-degree “It’s Always Burberry Weather” outerwear campaign and “Wrapped in Burberry” festive campaign, which boosted brand desirability, particularly in outerwear.
Looking ahead, the company stated that in light of its Q3 performance, it is now “more likely the group’s second-half results will broadly offset the first-half adjusted operating loss, notwithstanding the uncertain macroeconomic environment”.
Joshua Schulman, chief executive officer, said: “Since launching Burberry Forward in November, we have moved at pace to advance our strategy to reignite brand desire, improve our performance and drive long-term value creation. We are encouraged by the response to our “It’s Always Burberry Weather” outerwear campaign and “Wrapped in Burberry” festive campaign.
“These activations resonated with a broad range of luxury customers leading to an improvement in brand desirability and strength in outerwear and scarves. The acceleration of our core categories reinforces our belief that Burberry has the most opportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time. However, we recognise that it is still very early in our transformation and there remains much to do.”
