The job cuts, largely affecting office roles and including the cancellation of a night shift at the company’s trench coat factory in Castleford, England, are aimed at reducing costs and addressing overproduction as Burberry seeks to revive its performance following years of underperformance relative to rivals.
Additionally, the luxury firm also reported an adjusted operating profit of 26 million pounds ($34.55 million) for the financial year ended March, beating analysts’ estimates of 11 million pounds and narrowly avoiding a full-year loss. Fourth-quarter comparable store sales fell 6%, a smaller decline than the expected 7% drop.
“Our brand metrics have all shown a significant improvement in the second half versus the first half,” Schulman said on a call with journalists, according to Reuters. He added that Burberry plans to ramp up the reach and frequency of marketing campaigns as its Autumn and Winter collections land in stores.
Schulman, who took over as the CEO last year, has shifted Burberry’s focus back to its iconic trench coats and scarves, seeking to restore brand identity after a period marred by product missteps, excessive price increases, and a broader luxury market slowdown.
Regional sales pressure
Burberry’s sales declined across all major regions last year. The Americas and the EMEIA region (Europe, Middle East, India, and Africa) each saw a 4% drop, while Asia Pacific sales fell 9%. Schulman noted that U.S. consumer momentum weakened in February, calling the market “a little choppy.” The U.S. accounts for 19% of Burberry’s total sales.Although the company did not address the impact of U.S. tariffs directly, it cited “geopolitical developments” as contributing to a more uncertain global economic outlook. Burberry also did not provide financial targets for the 2026 fiscal year.Also read | Will China’s trade charm clip Nifty’s wings as FIIs may rethink India bet amid US truce?
Schulman, formerly at Jimmy Choo, is Burberry’s fourth CEO in a decade. His predecessors, including Marco Gobbetti and Jonathan Akeroyd, pursued differing strategies—from luxury repositioning to a focus on accessories—without achieving sustained financial momentum.
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