Shoppers walk into a Burberry store at Fashion Valley, an upscale shopping mall in San Diego, California on December 13, 2024.
Kevin Carter Getty Images News | getty images
shares of Burberry The company rose 14% on Friday after reporting a smaller-than-expected sales decline in the fiscal third quarter, giving the first glimpse of CEO Joshua Shulman’s efforts to revive the troubled British fashion house.
Comparable sales declined 4% in the three months to December. Analysts had expected a 12% decline in the company’s compiled consensus estimate.
Shares were last seen up 14.29% as of 8:20 a.m. London time.
Total revenue over the festive shopping period was £659 million ($816 million), down 7% year-on-year at reported exchange rates.
Sales were down in the Asia Pacific and European, Middle East, India and Africa regions – down 9% and 2%, respectively – but up 4% in the Americas, reflecting the broader trend. Resurgence in US consumer spending In the luxury sector.
The company said it is now “more likely” that second-half results will largely offset first-half adjusted operating losses.
Schulman said he was “encouraged” by customer reaction to Burberry’s latest campaigns, but added that the brand’s transformation was still in its early stages and “there is still a lot to do.”
“Since launching Burberry Forward in November, we are committed to driving forward our strategy to reignite the brand’s passion, improve its performance and drive long-term value creation,” he said in a statement on Friday. Have progressed rapidly.”
“The acceleration in our core categories reinforces our belief that Burberry has the greatest opportunities where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time.”
Shulman announced in November Immediate plans to get it “just right” The company followed a long period of poor performance amid declining sales and several management changes.
Schulman said the plans were intended to return the brand to its “original purpose” – which drove Burberry’s shares to an all-time high, and the stock has since continued to track higher on the confidence of new investors.
The announcement was made alongside Burberry’s results for the first half ending September 28, 2024, during which Sales decreased by 20% For the second consecutive quarter.
symbolizes strategic overhaul latest iteration Of the 169 year old retailer. Shulman joined in In July Michael Kors became the brand’s fourth CEO in the last decade.
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