Global fashion brand Burberry has reported a 7% decline in retail revenue for the third quarter (Q3) of the fiscal year 2025 (FY25) with earnings dropping to £659m ($822.31m) from the previous year's £706m.
The company reported a 4% decrease in comparable store sales during the same period.
The quarter, which concluded on 28 December 2024, saw a disparate performance across regions.
In the Americas, comparable store sales rose by 4%, buoyed by domestic expenditure.
Europe, the Middle East and Africa experienced a 2% reduction in comparable store sales, with both local customers and tourists contributing to the decline.
The Asia Pacific region faced a steeper fall of 9%, with Mainland China's sales down 7%.
Despite the downturn, Mainland Chinese customers' spending remained consistent with the previous year, and this steadiness played a role in Japan's 4% increase in sales.
However, South Asia Pacific and South Korea witnessed significant declines of 19% and 12% respectively.
Product-wise, outerwear and scarves maintained their strong performance globally. The contribution from space was positive at 1%, yet retail sales at constant exchange rates ultimately fell by 3%.
Reflecting on the third-quarter outcomes and considering the uncertain economic landscape, Burberry anticipates that its second half results will likely just offset the first half adjusted operating loss.
Burberry CEO Joshua Schulman said: "Since launching Burberry Forward in November, we have moved at pace to advance our strategy to reignite brand desire, improve our performance and drive long-term value creation.
“We are encouraged by the response to our It’s Always Burberry Weather outerwear campaign and Wrapped in Burberry festive campaign. These activations resonated with a broad range of luxury customers leading to an improvement in brand desirability and strength in outerwear and scarves.
“The acceleration of our core categories reinforces our belief that Burberry has the most opportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time. However, we recognise that it is still very early in our transformation and there remains much to do.”
In December 2024, Burberry initiated a lawsuit against the value retailer B&M, citing trademark infringement, as reported by Sky News.
