Burberry Sales Decline Slows Amid Turnaround Efforts

Burberry reported a 1% decline in comparable store sales for the quarter ending June 28, a marked improvement compared to a 6% drop in the prior quarter and better than analysts’ expectations of a 3-4% decline. Sales grew in Europe, the Middle East, India, Africa, and the Americas, while declines persisted in Greater China and Asia-Pacific but at a slower pace. CEO Joshua Schulman credits the progress to a turnaround strategy emphasizing British heritage designs and cost efficiency. The company is implementing a major cost-cutting program, planning to reduce its global workforce by about 20%, and expects to achieve £80 million in annualized savings by fiscal 2026. Schulman remains confident despite challenges like weak tourist spending and the lack of VAT-free shopping in the UK, noting strong brand desirability and a positive response to the autumn collection. Burberry shares have risen on signs of stabilization, with analysts optimistic about a potential return to sales growth.