Keystone-SDA
The British luxury group Burberry, which in November started an “emergency” refocusing on its emblematic products to try to resolve its difficulties, saw its sales further retreat for its third quirky quarter.
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January 24, 2025 – 10:18 am
(Keystone-ATS) But he claims to be straightening the bar. Its turnover fell 7% during this period completed at the end of December, to 659 million pounds (738.8 million francs during the day), he said in a statement on Friday, said However “encouraged by the response of customers and its partners during the holiday season”.
The brand, British luxury icon, has been breaking up for months with a lack of world appetite for high -end products and unhappy strategic choices.
Its stock market value has plunged, to the point of being dislodged in September from the star index of the London Stock Exchange, even if it has rebounded a little since.
After a decline in its 22% sales in the first half, she had announced that she would now focus on her historical products, such as the famous trench coat.
-Cost reduction
This plan was accompanied by a cost reduction program, the abandonment of more modern or niche products that have not found clientele, and a price more related to its brand – the luxury, but not the ‘Ultra luxury.
In recent months, “we have advanced at a sustained pace our strategy aimed at rekindling the desire for a brand, improving our performance and promoting the creation of long -term value”, but “there is still a lot to do”, A Recognized the director general Joshua Schulman, quoted in the press release.
The brand at the famous tartan has suffered in recent months, like the entire sector, of a demand at half mast for luxury products, the fault of dny-consumption in the United States and in Europe and Chinese demand at the end breath.
But its sales “with comparable stores” (that is to say excluding openings or shopping closings) rebounded in the third quarter in America (+4%), especially after the reopening of a brand new store in New York.
Sales, however, still fell (-2%) in the EMEIA zone (Europe, Middle East, India and Africa), and more (-9%) in Asia, according to its figures published on Friday.
The company, which had published in 2023-24 an annual profit practically divided by two, hopes that its turnover of the second half will manage to compensate for the poor results of the first.
She assures that her outdoor clothes and scarves boost her sales worldwide.
