The British fashion house, Burberry, now under the watchful eye of designer Daniel Lee, has revealed its worst results of the fiscal year as predicted.
The beleaguered brand reported that its overall revenue had fallen by four percent to £2.968 billion with some of the key regions that the company was targeting not coming through with the hoped for sales. Reported operating profit was £418 million, which was down 36%.
Fashion Network reports that “…while Asia-Pacific was up three percent for the year, it dropped 17% in the final quarter. Mainland China increased two percent in the year and fell 19% in Q4.” In the Americas, sales have stayed weak, with Burberry admitting it is seeing a “relatively broad-based decline in the region across our local customers”.
The company revealed that its outerwear has performed relatively well but ready-to-wear collections for both men's and women's “landed below the group average”.
CEO Jonathan Akeroyd remained buoyant though and is reported to be steadfastly sticking to a recovery plan: “Executing our plan against a backdrop of slowing luxury demand has been challenging." He continued: "While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements. We are using what we have learned over the past year to fine-tune our approach, while adapting to the external environment. We remain confident in our strategy and in our ability to successfully navigate this period.”
