Burberry stems its losses amid cost cuts
Dive Brief:
Burberry reported first quarter fiscal 2026 retail revenue of 433 million pounds, or about $584 million, down 6% year over year, according to a Friday earnings release.
Comparable store sales for the period were up 1% year over year for the region comprising Europe, the Middle East, India and Africa. The key metric rose 4% in the Americas. In China, comp sales sank 5%, while in the rest of the Asia Pacific region, they fell 4%.
The company also said that its previously announced organizational changes, which included up to 1,700 job cuts, were on target to foster 'greater collaboration and agility,' while its cost efficiency program was on track to deliver 80 million pounds in annualized savings by FY26.
Dive Insight:
Despite some losses, Burberry's Q1 results show marked improvement over the first quarter of fiscal 2025, when retail revenue sank 22% year over year and Joshua Schulman took over as CEO.
Under Schulman, the company has been working toward a turnaround, and in November announced its strategic Burberry Forward plan. That initiative was designed to refocus the brand on its history and heritage, with particular attention on outerwear and scarves. At the time of the plan's announcement, Burberry said that the brand's falling revenue was a result of a move away from its core categories.
'Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence,' Schulman said in the release. '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.'
Shulman added that while external challenges persist and the company is still in the early stages of its transformation, the initial progress is encouraging.
By region, EMEIA growth was boosted by local spending but offset by a decline in tourist spending. Meanwhile, the Americas benefited from growth in new customers. In the Asia Pacific region, which includes Japan, South Korea, Southeast Asia, Australia and New Zealand, a challenging performance in Japan was partially offset by growth in South Korea.
On a call with analysts, Schulman said that regions around China were suffering from a decline in tourism among Chinese consumers. In addition, he added that within China, Burberry was seeing an increase in sales among Generation Z and younger customers, while some customers in that region who focus more on 'investment dressing' tend to shop later in the year.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bloomberg
an hour ago
- Bloomberg
China Fails to Capitalize on Europe's Grievances Over US Tariffs
I'm Chris Anstey, an economics editor in Boston. Today we're looking at Europe-China ties. Send us feedback and tips to ecodaily@ And if you aren't yet signed up to receive this newsletter, you can do so here. Fifty years after the European Economic Community (now the European Union) established diplomatic ties with mainland China, relations with Beijing are at an ' inflection point.'
Forbes
2 hours ago
- Forbes
Coal Isn't Dead Yet: Global Trends Defy Climate Pledges
WASHINGTON, DC - APRIL 08: U.S. President Donald Trump speaks alongside coal and energy ... More workers during an executive order signing ceremony in the East Room of the White House on April 08, 2025 in Washington, DC. The Trump administration has elected to roll back Biden-era environmental policies with the intention to help revive coal-fired power plants. (Photo by) Despite years of climate summits and net-zero targets, global coal consumption and production both hit record highs in 2024. According to the newly released 2025 Statistical Review of World Energy, global coal demand reached an all-time high of 165.1 exajoules (EJ), a powerful reminder of how deeply the world still relies on this carbon-intensive fuel. The Asia-Pacific Powerhouse At the heart of coal's resilience is Asia. China alone accounted for a staggering 56% of global coal consumption last year, burning through 92.2 EJ. That's an increase of nearly 17% since 2017, despite repeated predictions that China had already passed 'peak coal.' The reality is that coal remains the backbone of China's electricity system, industrial activity, and energy security strategy. India, too, has doubled down on coal. Consumption there climbed to 21.8 EJ, up nearly 45% from a decade earlier. A combination of rising electricity demand, a lack of natural gas infrastructure, and favorable government policies continues to drive growth. The broader Asia-Pacific region tells a similar story. Nations like Indonesia, Vietnam, and Bangladesh are rapidly expanding coal use as they build out electricity grids and industrial capacity. For these countries, coal remains cheap, reliable, and—in many cases—domestically abundant. While wealthier nations are pushing renewables, many developing economies simply can't afford the transition at the same pace. Decline Elsewhere—But Not Enough Coal use continues to fall across much of the OECD. Europe, for example, saw consumption drop to 10 EJ in 2024, continuing a steady downward trend even amid energy security concerns following Russia's invasion of Ukraine. There were some short-lived spikes in places like Germany and Poland, but the overall direction remains lower. Coal Consumption 1965-2024. In the U.S., coal use came in at 9.9 EJ—well below historical highs but showing a small post-COVID rebound. America's power sector has largely shifted to natural gas and renewables, and the long-term trajectory remains downward. Yet these declines aren't enough to offset growth in the developing world. Non-OECD countries now account for about 71% of global coal consumption, up from 63% just a decade ago. The energy divide is widening, and it has significant implications for both climate policy and resource security. Production Keeps Pace—For Now Coal production also surged in 2024, hitting a new global record of 182 EJ. China again leads the way, producing more than half the world's coal—94 EJ in total. India continued its rapid expansion, more than doubling its output since 2006. Indonesia, too, has nearly quadrupled production over that period, largely to meet export demand from Asia. In contrast, the U.S. and Russia hold massive coal reserves but have adopted more cautious production strategies. The U.S. produced 23 EJ in 2024, about 12% of the global total. Russia has plateaued around 9.2 EJ, in part due to sanctions and shifting market dynamics. Non-OECD countries now supply over 60% of global coal output, up from 45% in 2006. This underscores a broader trend: the coal economy is increasingly centered in the Global South, where energy demand is still growing rapidly and alternative infrastructure is limited. A Word on Reserves An important context is that the world still has plenty of coal. The U.S. has the largest proven reserves, with a reserves-to-production (R/P) ratio exceeding 500 years. Russia, Australia, and India also boast deep reserves, although China's are being depleted far more quickly—its R/P ratio is just 37 years. Still, not all reserves are created equally. Countries like Germany and Poland have large deposits of lignite, which is less energy-dense and more polluting than higher-grade coals. Meanwhile, nations like Indonesia and Australia hold coal that is more export-friendly, giving them an edge in global markets. The Infrastructure Trap Part of what keeps coal in play is infrastructure inertia. Across Asia, decades of investment in coal plants, rail networks, and ports have created a system that's hard to unwind. Coal provides steady baseload power in a way that intermittent renewables currently can't—especially in places where battery storage and LNG terminals are lacking. Governments are responding to surging demand with a mix of pragmatism and contradiction. China and India are investing heavily in renewables, but they're also approving new coal projects to avoid blackouts. Subsidies and favorable mining policies persist, even as leaders make high-profile climate pledges. Final Thoughts Global coal use isn't going away any time soon. To the contrary, global coal consumption still growing. The world's wealthiest nations are moving away from it, but the momentum in Asia and the Global South is more than enough to offset those declines. For better or worse, coal remains a pillar of global energy—driven by affordability, energy security, and infrastructure lock-in. The challenge for policymakers is to reconcile this reality with climate goals. Until the world finds scalable, affordable alternatives for baseload power in emerging economies, coal will continue to thrive. And that makes bridging the gap between ambition and reality more important—and more difficult—than ever.
Yahoo
5 hours ago
- Yahoo
Son Heung-min set for Tottenham showdown talks after receiving £15m LAFC offer as South Korean heads into final year of Spurs contract
LAFC make £15m bid for Son Tottenham delay decision until post-Asia tour Captain's presence vital for Spurs' commercial obligations Follow GOAL on WhatsApp! 🟢📱 WHAT HAPPENED? Tottenham received a £15m offer from LAFC for Son earlier this week, and the Lilywhites are seriously weighing up a potential sale this summer, as per transfer guru Fabrizio Romano. However, earlier reports have suggested that they are not expected to sanction any move until after their Asia tour, where Son is seen as a central figure. The South Korean still has a year left on his deal, and Spurs are open to further discussions. THE BIGGER PICTURE Despite a rather horrific Premier League season in which they finished 17th, Son captained Tottenham to a historic Europa League title in 2024-25. The 33-year-old has been a consistent performer over the years, even winning the Golden Boot in 2022. The South Korea international still has a year left on his deal, and Spurs are open to further discussions. An exit would mark the end of a decade-long era in north London. DID YOU KNOW? Son remains one of Tottenham's most popular and marketable players, particularly in Asia, making him crucial to their pre-season plans. Reports suggest Spurs could lose up to 75 per cent of their tour revenue if he doesn't feature, which is the reason the Lilywhites will only decide on his future after the tour. With Thomas Frank open to either outcome, the club must now balance football and commercial interests before making a decision. WHAT NEXT FOR SON? Son is expected to travel and feature in the upcoming pre-season matches in South Korea and Hong Kong. Formal talks about his future will likely resume after the tour concludes. The Black and Gold are keen, but any deal hinges on Son agreeing to a move to the United States and to LAFC, in particular.
