Luxury fashion house Burberry has reported a significant 22% decrease in revenue for the first half (H1) of fiscal year 2025 (FY25), with figures dropping to £1.08bn ($1.36bn) from £1.39bn in the comparable period of the previous financial year.
The luxury fashion retailer also experienced a 20% fall in retail comparable store sales during this period.
For the 26 weeks ending on 28 September 2024, Burberry recorded an operating loss of £53m, a stark contrast to the operating profit of £223m reported in H1 FY24.
The company's operating loss margin also declined sharply by 2,080 basis points to 4.9%.
Diluted loss per share stood at 20.8p in H1 FY25, compared to earnings per share of 42.1p in H1 FY24.
Alongside the first-half performance, Burberry has launched 'Burberry Forward', a strategic initiative aimed at revitalising brand appeal and enhancing performance for long-term value creation.
The strategy focuses on reconnecting with the brand's heritage and leveraging its strengths through a disciplined approach and a diverse product range to attract luxury customers.
Additionally, the retailer intends to foster a high-performance culture by driving organisational clarity, rebuilding execution discipline, and leveraging data-driven decision-making.
Burberry CEO Joshua Schulman said: “Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments. Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth.
“We have a powerful brand with broad appeal among luxury customers, authority in the outerwear and scarf categories which have remained resilient through this period, and a strong presence in all key luxury markets. 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."
