Burberry ‘encouraged' by turnaround progress amid job cuts
However, it reflected a slowdown in the group's sales decline amid efforts to turn around its fortunes after coming under pressure from weaker luxury spending.
Last November, the group launched a £40 million cost-cutting programme after first sinking to a loss.
Naomi Campbell walked the Burberry Autumn/Winter 25 runway at London Fashion Week (Jordan Pettitt/PA)
In May, the company announced proposals to cut about 1,700 jobs worldwide over the next two years as part of the shake-up.
In its fresh update, Burberry said it has made some progress in its transformation efforts but is still in the 'early stages' of the potential turnaround.
The company said: 'In the first half, we are continuing to prioritise investment and expect to see the impact of our initiatives build as the year progresses.'
It pointed towards efforts to simplify its operations and improve productivity in a bid to improve profit margins.
In the latest quarter, Burberry said there were improvements across its main regions, amid strong sales of 'outerwear and scarves'.
Comparable retail sales grew by 1% in Europe, the Middle East, India and Africa (EMEIA) as positive local spending helped to offset declines among tourists.
Meanwhile, its Americas business reported growth of 4% for the quarter.
However, it said sales in Greater China fell 5% for the quarter, while its Asia Pacific division saw a drop of 4%, driven by a 'challenging performance in Japan'.
Joshua Schulman, chief executive of Burberry, said: '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.
'Our autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores.
'Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Scottish Sun
3 hours ago
- Scottish Sun
Iconic fashion chain plans UK high street RETURN after going bust and shutting 46 stores
AN iconic fashion chain is planning to make a triumphant return to the high street next year, The Sun can exclusively reveal. Ted Baker is set to make a comeback to the British high street in early 2026, sources close to the matter have said. Advertisement 1 Ted Baker is understood to be returning to the UK high street early in 2026 Credit: PA It is understood the brand is planning to return to London, with more details to be confirmed closer to the time. It's not clear yet how many shops there will be or whether there will be any outside the capital. The news comes more than a year after the much-loved brand dramatically collapsed and shuttered all its stores in August 2024. Founded in 1988, Ted Baker was well-known in the 90s for its clothes and accessories with bold and floral designs. Advertisement A decade ago it was one of the strongest names in the retail sector with 550 shops and concessions around the world - but has recently ran into major difficulties. Shoppers were shocked when the fashion giant fell into administration in March last year. It brought back its website in November last year, stocking a range of menswear, womenswear and accessories. The website currently ships to the UK only but it says it will offer international shipping "very soon". Advertisement The Sun has approached Ted Baker for comment. What happened to Ted Baker The company's troubles first began in 2019 after its founder Ray Kelvin quit his role following allegations of harassment. Fashion chain to shut all shops It then put out several profit warnings, which is when a company advises the stock market that profits will be lower than expected. In 2020, the retailer said it would axe 160 jobs. Advertisement More bad news came in March 2024 it collapsed into administration, putting dozens of stores and hundreds of jobs at risk. By then the company had 86 stores across the UK and 975 employees. No Ordinary Designer Label (NODL), owned by Authentic Brands Group (ABG) and trading as Ted Baker, appointed Teneo as administrators. NODL blamed a deal going sour between its owners and a Dutch operating partner that had allegedly promised to inject cash into the business. Advertisement By April, Ted Baker had announced it would close 15 stores with the loss of 120 jobs. The Sun exclusively revealed in July 2024 that the brand was at risk of disappearing from the high street forever within weeks. It was then announced that the last of Ted Baker's 31 stores would be closed for good in August. The brand launched huge clearance sales to get rid of its final stock, with at least one store advertising at least 70% off everything. Advertisement Shoppers raced to clear the shelves of glamorous maxi dresses, winter coats and men's suits at bargain prices before the stores shut forever. A timeline of what happened March 2019 - Founder Ray Kelvin resigns after harassment allegations December 2019 - Ted Baker shares plummet 12% February 2020 - It announces it plans to cut 160 jobs March 2024 - Ted Baker collapses into administration April 2024 - The retailer says it will close 15 stores July 2024 - The Sun reveals the chain is at risk of disappearing August 2024 - The last Ted Baker stores close for good November 2024 - The website relaunches July 2025 - It's understood Ted Baker is planning to make a comeback Other iconic brands that have come back from collapse Ted Baker wouldn't be the first brand to make a dramatic comeback to the high street. Shirtmaker T.M. Lewin announced last month it would be opening more stores in London, Manchester and Edinburgh. The brand had fallen into administration and shut all of its 66 branches in 2020. Advertisement Last year, fashion and homeware chain Cath Kidston made a surprise return by opening a store in Westfield White City, London. The retailer had crashed into administration and shut all of its stores in 2023. Wilko also made a high street comeback with stores in England, Scotland, Wales and Northern Ireland almost a year after it went into administration. Meanwhile fashion chain M&Co opened a new store in Scotland a little more than a year after it collapsed. Advertisement
Western Telegraph
4 hours ago
- Western Telegraph
King meets Indian PM for talks at Sandringham
Charles and the Indian leader sat down for talks at the King's private Sandringham estate in Norfolk after Sir Keir Starmer met his Indian counterpart at Chequers. Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal formally signed the trade agreement in the great hall of Chequers, Sir Keir's official country residence. The King was given a tree to be planted this autumn, inspired by an environmental initiative launched by Mr Modi (Aaron Chown/PA) It is thought the King last met India's leader in December 2023 on the sidelines of the Cop28 UN climate change summit, hosted that year in Dubai. There has been speculation for some time the King and Queen could make a state visit to India, one of the major countries of the Commonwealth which does not have Charles as its head. During their time together, the King was given a tree to be planted this autumn, inspired by the environmental initiative Ek Ped Maa Ke Naam launched by Mr Modi, which encourages people to plant a tree in tribute to their mothers.
South Wales Argus
4 hours ago
- South Wales Argus
King meets Indian PM for talks at Sandringham
Charles and the Indian leader sat down for talks at the King's private Sandringham estate in Norfolk after Sir Keir Starmer met his Indian counterpart at Chequers. Business Secretary Jonathan Reynolds and his Indian counterpart Piyush Goyal formally signed the trade agreement in the great hall of Chequers, Sir Keir's official country residence. The King was given a tree to be planted this autumn, inspired by an environmental initiative launched by Mr Modi (Aaron Chown/PA) It is thought the King last met India's leader in December 2023 on the sidelines of the Cop28 UN climate change summit, hosted that year in Dubai. There has been speculation for some time the King and Queen could make a state visit to India, one of the major countries of the Commonwealth which does not have Charles as its head. During their time together, the King was given a tree to be planted this autumn, inspired by the environmental initiative Ek Ped Maa Ke Naam launched by Mr Modi, which encourages people to plant a tree in tribute to their mothers.
