Struggling luxury brand Burberry’s return to outerwear roots comforts investors who turned on brand
BURBERRY’S return to its outerwear roots has comforted investors who had cold-shouldered the brand.
New boss Joshua Schulman is focusing a turnaround of the struggling luxury business on coats and scarves instead of pricey handbags.
It has made use of celebs like England footballer Cole Palmer in recent campaigns for its fashion range.
Yesterday the British fashion house, known for its distinctive check pattern, posted a 4 per cent slip in sales for the last quarter of 2024 — much better than the 12 per cent drop analysts had feared.
And with the brand announcing it was on track to break even again, relieved investors sent its share price surging by 17 per cent to a ten-month high.
It marks a change from speculation since the pandemic that Burberry may be vulnerable to a takeover.
Mr Schulman said he was “extremely pleased” with the results.
He noted: “We have seen new customer growth for the first time in over two years.”
Burberry has been especially boosted by a surge in US demand, which helped to offset shrinking sales in China and Europe.
But Mr Schulman says it is “too early” to say what effect Donald Trump’s proposed tariffs will have.
Analysts have highlighted a rise in US consumer spending since Trump’s election win in November.
Kitchen links?
KITCHENWARE firm Lakeland could be sold in the face of a “challenging retail environment”.
Potential buyers have already been contacted, say reports. The retailer has 1,000 staff at 59 shops.
Meanwhile, a deal to sell cut-price chain The Original Factory Shop was close to done yesterday.
Jobs canned?
THE owner of Branston beans and Princes tuna warned it could slash jobs and move production overseas if strike threats are not dropped.
Princes Group chairman Angelo Mastrolia said it would withdraw a three per cent pay offer if Unite action goes ahead. It may lead to a “need to reduce jobs at our UK sites”.