Burberry’s retail sales decline in the third quarter of FY25

Global fashion brand Burberry has reported a 7% decline in sales for the third quarter (Q3) of fiscal year 2025 (FY25), with profits falling to £659 million ($822.31 million) from the company’s £706 million previous year.

The company reported a 4% decline in comparable store sales during the same period.

The quarter ended December 28, 2024 saw mixed performance across regions.

In America, comparable store sales increased by 4%, supported by domestic spending.

Europe, the Middle East and Africa saw a 2% decline in comparable store sales, with both local customers and tourists contributing to the decline.

The Asia-Pacific region suffered a steeper decline of 9%, while sales in mainland China fell 7%.

Despite the downturn, customer spending in mainland China remained consistent with the previous year, and this stability played a role in the 4% sales increase in Japan.

However, South Asia Pacific and South Korea witnessed significant declines of 19% and 12% respectively.

Product wise, outerwear and scarves maintained their strong performance globally. The contribution from space was positive at 1%, but retail sales at constant exchange rates ultimately fell by 3%.

Looking back at the third quarter results and taking into account the uncertain economic landscape, Burberry expects that the second half results will likely just offset the adjusted operating loss for the first half.

Burberry CEO Joshua Schulman said: “Since launching Burberry Forward in November, we have made progress on our strategy to reinvigorate brand desire, improve our performance and drive long-term value creation.

“We are encouraged by the response to our It’s Always Burberry Weather outerwear campaign and the festive Wrapped in Burberry campaign. These activations resonated with a broad range of luxury customers, improving the brand desirability and strength of outerwear and scarves.

“The acceleration of our core categories reinforces our belief that Burberry has the greatest opportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time. However, we recognize that our transformation is still at a very early stage and there is still much to do.”

In December 2024 Burberry started a lawsuit against value retailer B&M, citing trademark infringement, as reported by Sky News.

“Burberry’s retail sales decline in Q3 FY25” was originally created and published by Retail Insight Networka brand owned by GlobalData.

The information on this site has been included in good faith for general information purposes only. It is not intended to amount to advice on which reliance should be placed and we make no representation, warranty or guarantee, express or implied, as to its accuracy or completeness. You must obtain professional or specialist advice before taking or refraining from any action on the basis of the content on our site.