Burberry ‘encouraged' by turnaround progress amid job cuts
The London fashion house revealed that retail revenues fell by 6% to £433 million for the 13 weeks to June 28, compared with a year earlier, amid a drag from currency rates.
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.
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
The Guardian
29 minutes ago
- The Guardian
Starmer faces difficult task persuading Trump to take different path on Gaza
Moments after Air Force One touched down at Prestwick on Friday for a trip in which politics will take as big a billing as golf, Donald Trump was asked about his relationship with Keir Starmer. 'I like your prime minister. He's slightly more liberal than I am, as you've probably heard. But he's a good man,' the US president told reporters. At a time when the UK wants Trump's ear on numerous weighty issues, his response to questions about the 'special relationship' will have given Downing Street some reassurance. But it has been hard won. Starmer has been clear since before Trump's re-election that he would work with him if it was in Britain's national interest. There have been uncomfortable moments, but so far his decision to align himself with the US president has broadly paid off. Most notable was the economic deal agreed by the two leaders that slashes some of Trump's tariffs on cars, aluminium and steel, and which – even though it is not yet fully implemented – the UK government hopes will be a first step towards a closer trading relationship. Starmer, along with other western allies, has also helped encourage Trump to shift his position on Ukraine. After initially siding with Vladimir Putin and appearing to blame Volodymyr Zelenskyy for the invasion, the US president has since declared himself 'very unhappy' with his Russian counterpart. The prime minister now faces his toughest diplomatic task of all: trying to persuade Trump to take a different path on the humanitarian crisis in the Middle East. Even getting the issue on the agenda will not have been straightforward, with the White House not regarding Gaza as a priority. Trump is the only international leader whom the Israeli prime minister, Benjamin Netanyahu, listens to – though even then, not all of the time – so getting the US president's ear at this precise moment is an opportunity not to be squandered. With international fury over the situation on the ground in Gaza growing, Starmer has also been under pressure domestically – from his cabinet, Labour MPs and increasingly the public – to take further action against Israel. Government advisers are defensive – citing what the UK has already done to hold Israel to account since Labour came to power – and promising further action will follow, even if it is not clear what that might constitute. They point to the UK restoring funding to the UN agency Unrwa, sanctioning far-right Israeli ministers and those who committed settler violence, breaking off trade negotiations with Israel, backing the legitimacy of the international criminal court and restricting arms licences to Israel (though not preventing them entirely). Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion The initial urgency is around humanitarian aid, with mass starvation spreading across Gaza, and Starmer will be hoping to persuade Trump that the situation on the ground will only worsen unless the Israelis fully lift their blockade of almost all aid into the territory. The longer-term prize, however, would be a ceasefire. Starmer will press Trump to revive ceasefire talks between Israel and Hamas, after the US and Israel withdrew their negotiation teams from Qatar last week. Getting them back round the table to agree a 60-day break from fighting is a prerequisite to a more permanent cessation of violence. The window of opportunity is narrow: the Israeli parliament is not sitting until October, which gives Netanyahu the cover he would need to agree a deal. But Starmer knows Trump is the only international figure who can put pressure on him to do so. Only at that point does Starmer feel the UK could follow France and formally recognise a Palestine state. No 10 insiders say it is a 'matter of when, not if' and David Lammy, the foreign secretary, will be at a UN conference this week to establish a pathway to formal recognition. To the deep frustration of many in his party, the prime minister last week rejected a call to follow France in recognising Palestine amid concerns the move would be largely symbolic without a ceasefire in place, and that issue could overshadow the talks with Trump. But that means even more is riding on Monday's meeting with the US president. It will be a test of whether the energy put into maintaining a good relationship with Trump has been worth it. And it will also show how far Starmer really is prepared to push to help bring an end to the catastrophe in Gaza.
The Guardian
an hour ago
- The Guardian
Zero-hours contracts: peers accused of ‘trying to block stronger UK workers' rights'
Conservative and Liberal Democrat peers have been accused of trying to block stronger rights for millions of workers amid a growing campaign by business leaders to water down Labour's zero-hours contract plans. In a blow for the government, the Lords last week voted to curtail the manifesto promise to give workers a right to a guaranteed hours contract and day-one protections against unfair dismissal. Setting up a showdown with the upper chamber, the Lords passed a series of amendments to the employment rights bill that will must be addressed by ministers when MPs return from their summer break. In an angry intervention on Monday, the general secretary of the Trades Union Congress, Paul Nowak, said the Lords was 'doing the bidding of bad bosses' and ought to 'get out of the way' of the plans. 'The sight of hereditary peers voting to block stronger workers' rights belongs in another century. It's plain wrong,' he said. Under the Lords' amendments, a requirement for employers to offer zero-hours workers a contract covering a guaranteed number of hours would be shifted to place the onus on staff to ask for such an arrangement. Protections against unfair dismissal from the first day of employment – which the government plans to reduce from the current level of two years – would be extended to six months, and changes to free up trade unions would be curtailed. The bill will return to the Commons in September for MPs to consider the amendments. The two houses then continue to vote on the changes in a process known as 'ping-pong' until a way forward is agreed. The amendments were put forward by the Lib Dem Lord Goddard, a former leader of Stockport council, and two Tory peers: Lord Hunt, who is a shadow business minister, and Lord Sharpe, a former investment banker. Hunt did not respond to a request for comment. Sharpe said: 'Keir Starmer's unemployment bill is a disaster for employees as much as it is a threat to business. Labour politicians who have never worked in business are destroying the economy. Only the Conservatives are listening to business and making the case for growth.' Goddard said he feared Labour's 'rushed bill' would be bad for workers in small businesses and on family-owned farms. 'They were badly let down by the Conservatives, and Labour seems to have a blind spot when it comes to farms and small businesses, too. 'We support the bill as a whole and have worked constructively to try to improve it. It's a shame to see the government getting upset that we didn't simply give them a blank cheque.' Employers groups welcomed the changes, saying the Lords was responding to business concerns. Helen Dickinson, the chief executive of the British Retail Consortium, said: 'Putting forward positive, practical and pragmatic amendments to the employment rights bill [will] help to protect the availability of valuable, local, part-time and entry level jobs up and down the country.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Industry chiefs have stepped up lobbying against the workers' rights changes, warning that companies were already slashing jobs and putting up prices in response to tax rises in chancellor Rachel Reeves's autumn budget. Dickinson said there was 'further to go' to curb the employment rights bill. 'Even with these amendments accepted, retailers remain worried about the consequences for jobs from other areas of the bill.' Union leaders have, though, urged ministers to stand firm. A recent mega poll of 21,000 people commissioned by the TUC found a majority of UK voters – including Conservative, Lib Dem and Reform UK supporters – backed a ban on zero-hours contracts. Nowak said the government plan included 'commonsense protections' that a majority of people wanted to see become law. 'These peers are not just out of touch, they are actively defying their own voters – and the public at large. The government must stand firm in the face of cynical attacks and deliver the employment rights bill in full.'
Times
an hour ago
- Times
Financial Ombudsman Service boss paid £230,000 after ousting
The ousted head of the Financial Ombudsman Service received a pay-off of almost £230,000, it has been disclosed in the annual report. Abby Thomas, who left abruptly on 6 February, was paid £229,869 in severance payments on top of her normal salary. The payoff included £100,000 for loss of office, £107,692 in lieu of notice and £22,177 for a period of gardening leave that began on the day she left, the FOS said. MPs on the Treasury select committee have hit out at the manner of her departure and criticised the FOS chairwoman Baroness Manzoor for refusing to answer questions on why Thomas left and whether she was forced out. The FOS, which rules on complaints by consumers about financial services firms and can set compensation orders, is under pressure to reform. Rachel Reeves has pledged to curb its powers so it no longer acts like a regulator after complaints from the industry that it has increased the cost of 'mass redress events'. It has been dealing with a significant rise in claims, mainly related to car finance loans, but also because of concerns about other consumer loans and more people complaining about banks' handling of frauds. Dame Meg Hillier, chairwoman of the Treasury committee, said this month: 'The handling of this situation by the senior leadership has been deeply disappointing.' Thomas, a former Virgin Media executive, served for less than three years. She has been replaced by James Dipple-Johnstone as chief ombudsman and Jenny Simmonds as interim chief executive. Manzoor is due to retire on August 1. The FOS received 450,000 new inquiries in the year to March, up from 330,000. The motor finance industry is braced for a judgment from the Supreme Court this Friday that could determine the scale of compensation payments for failing to disclose commissions paid to dealers.
