Burberry confronts challenges with falling sales, leadership changes
Date
7/16/2024 5:28:32 AM
(MENAFN) Burberry, the renowned British fashion house, reported a significant decline in retail revenues for the 13-week period ending June 29, totaling £458 million (USD594 million) compared to £589 million in the previous year. This decline, amounting to a 21 percent drop in sales, contributed to a notable setback for the company reflected in a 16 percent decrease in its share price following the announcement of these figures and the appointment of a new chief executive.
The company anticipates continued challenges in the upcoming quarter, projecting operating losses as it navigates through a period of declining revenues. Burberry has adjusted its fiscal year 2025 outlook, forecasting operating profits below previous expectations. Gerry Murphy, Burberry's chief executive, expressed disappointment with the first-quarter performance, noting that initial weaknesses in their outlook for 2025 have further exacerbated. If current trends persist into the second quarter, the company expects to incur an operating loss in the first half of the year. Consequently, Burberry has decided to suspend its dividend for the 2025 financial year in response to these challenges.
Alongside the financial updates, Burberry announced the appointment of Joshua Schulman as the new CEO and COO, succeeding Jonathan Akeroyd. This leadership change comes amidst efforts to navigate the company through its current difficulties and position it for future growth. Despite the setbacks, Burberry remains focused on addressing market challenges and implementing strategic initiatives to stabilize its operations and enhance shareholder confidence in the long term.
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