The months follow one another and are similar for Burberry, but not in the way hoped. In May, the British luxury group had already suffered severe declines and was expecting a difficult second half. The company recorded one of the biggest declines in the FTSE 100, at -2.86%, with an operating profit of 418 million pounds for the 2024 financial year, down 34%. Burberry was weighed down by the decline in consumption in the luxury sector, as well as its failed bet to move upmarket, specifies Fashion Network.
Investors have thus lost the confidence they had in the creator of the famous trench coat. Result: the stock market plunge continues, to the point that the brand will be demoted from the FTSE 250, after fifteen years on the FTSE 100. The London Stock Exchange Group (LSEG) has already announced that the relegation will take effect “from the opening of the markets on Monday, September 23”. In addition to the slowdown in the luxury market, particularly in China (where even LVMH has been impacted), AJ Bell analyst Dan Coatsworth explains that the idea “of offering more high-end Burberry products before selling them off massively to clear unsold stock was a bad decision”.
In mid-July, faced with these disappointing results, the British luxury brand announced the replacement of its CEO. Jonathan Akeroyd will be replaced by Joshua Schulman, former head of the American brands Michael Kors and Coach. But for the new management, (…)
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