British luxury brand Burberry plans to cut 1,700 jobs worldwide as part of a restructuring programme, after reporting a 12% year-on-year drop in comparable store sales for the year ending 29 March.
The cost-cutting measures also include increased efficiency in procurement spending and real estate, which the company says will result in £100 million in savings by FY27.
For the year ended 29 March 2025, Burberry reported revenue of £2,461 million, down 17% year-on-year (YoY) on a reported FX basis, compared to £2,968 million in the previous year. Retail comparable store sales declined by 12%, versus a 1% drop in the prior period.
Adjusted operating profit fell sharply to £26 million from £418 million, reflecting a 94% YoY decline on a reported basis. The adjusted operating margin dropped to 1.0% from 14.1%, a decline of 1,300 basis points.
The company reported an operating loss of £3 million compared to a profit of £418 million in 2024, with the reported operating margin falling to -0.1% from 14.1%, a decline of 1,420 basis points. Profits on an adjusted basis, which exclude what Burberry views as one-off costs, stood at £26 million.
The brand said sales had improved in the second half of the year compared to the first half.
“After a challenging first half, we have moved at pace to implement Burberry Forward, our strategic plan to reignite brand desire, improve our performance and drive long-term value creation,” said CEO Joshua Schulman.
Sales in both the Americas and the Europe, Middle East, India and Africa (EMEIA) region fell 4% year-on-year, while Asia Pacific sales dropped 9%. While the company did not mention US tariffs directly, it cited “geopolitical developments” as contributing to greater economic uncertainty and refrained from providing specific targets for the 2026 financial year.
Cost-Cutting Drive
Burberry has been battling a sharp decline in demand from Chinese consumers, one of its key markets, which has significantly impacted its sales. After slipping into a loss, the company launched a £40 million cost-cutting plan in November.
On Wednesday, it announced plans to save an additional £60 million by the 2027 financial year, raising its total cost-saving target to £100 million.
