Burberry Group posts lower revenue, swings to operating loss

Burberry Group posted lower revenue in the 26 weeks that ended September 28, which the company blamed on inconsistent brand execution and a lack of focus on the core outerwear category and customer segments.

The footwear retailer’s revenue declined 22 per cent to £1.09 billion (US$1.38 billion) while swinging to an operating loss of £53 million.

Retail revenue fell 21 per cent to £885 million while wholesale revenue plunged 30 per cent to £169 million. Licensing revenue increased 3 per cent to £32 million.

“Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a
return to sustainable, profitable growth,” said Joshua Schulman, Burberry CEO.

“Now, we have a clear framework to reignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry’s best days are ahead.”

The company noted it is still early to determine whether its second-half results will fully offset its first-half adjusted operating loss.

Burberry Group said it is confident it will return to generating £3 billion in revenue over time.

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