Burberry Cuts Jobs as Full-Year Profit Swings to Loss

LONDON — Burberry reported full-year adjusted operating profit of £26 million ($35 million), beating low estimates as a turnaround program under new CEO Joshua Schulman progressed faster than markets predicted. Analysts had forecast only £4 million.

Net results swung to a loss of £66 million for the fiscal year through March, compared to £383 million in pre-tax profit the prior year. The group announced it would cut around 1,700 jobs, mostly in office functions, as well as phasing out the night shift in its Castleford trenchcoat plant as part of a cost-cutting push.

Still, Burberry shares rose 9 percent in early trading amid some signs of gathering momentum at the brand. Quarterly sales came in slightly ahead of estimates, falling 6 percent compared to a consensus forecast of negative 8 percent according to Bloomberg. That’s nearly in line with the 5 percent decline recorded at LVMH’s fashion division, and less than half the drop reported by Kering for the same quarter, suggesting that Burberry’s latest turnaround attempt is gaining some ground with consumers in a tough market for luxury goods.

“Burberry has fared better than most luxury peers through this reporting season,” Citi analyst Thomas Chauvet said. “We expect the market to react positively to resilient retail like-for-likes and a slight second-half EBIT beat.”

Last year Burberry brought on new CEO Schulman, who in November pledged to roll back recent price hikes, cut costs and refocus the brand’s messaging on the core outerwear category. Positive reception to the brand’s “London in Love” campaign — a star-studded homage to British romantic comedies featuring the tagline “It’s always Burberry weather” — suggests the refocused messaging is resonating with customers.

Schulman endorsed chief creative officer Daniel Lee’s work, alongside new chief marketing officer Jonathan Kiman and chief product officer Paul Price, to quickly adapt the brand’s message to appeal to a broader audience, “moving from modern British luxury to timeless British luxury.”

Burberry is in the process of “restoring a culture of creative and commercial alchemy,” Schulman told reporters. Lee’s winter 2025 show “exemplified how the new team is working together to deliver an extraordinary expression of timeless British luxury. We’re all excited about what’s to come.”

Stay tuned to BoF for updates on this developing story.