Shoppers walk into a Burberry store at Fashion Valley, an upscale shopping mall on December 13, 2024 in San Diego, California.
Kevin Carter | Getty Images News | Getty Images
Shares of Burberry jumped nearly 13% on Friday after the company reported a shallower-than-expected dip in sales in the fiscal third quarter, providing a first glimpse of CEO Joshua Schulman’s efforts to revamp the beleaguered British fashion house.
Comparable sales declined 4% in the three months to December. Analysts had anticipated a 12% decrease in a company-compiled consensus estimate.
Shares were up 12.79% by 8:06 a.m. London time.
Total revenue over the festive shopping period was £659 million ($816 million), down 7% year-on-year at reported exchange rates.
Sales were subdued in Asia Pacific and in the European, Middle East, India and Africa region — down 9% and 2%, respectively — but ticked up by 4% in the Americas, reflecting a broader resurgence in U.S consumer spend across the luxury sector.
The company said it was now “more likely” that is second-half results would broadly offset its first-half adjusted operating loss.
Schulman said he was “encouraged” by the response from customers to Burberry’s latest campaigns, but noted that the brand’s transformation was still in its early stages and that “there remains much to do.”
“Since launching Burberry Forward in November, we have moved at pace to advance our strategy to reignite brand desire, improve our performance and drive long-term value creation,” he said in a statement out Friday.
“The acceleration of our core categories reinforces our belief that Burberry has the most opportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time.”
Schulman in November announced urgent plans to “course correct” after a prolonged period of underperformance for the company amid waning sales and a slew of management changes.
The plans — which Schulman said were intended to return the brand to its “original purpose” — sent Burberry shares to an all-time high, and the stock has since continued to track higher on renewed investor confidence.
The announcement was delivered alongside Burberry’s results for the first half ending on Sept. 28, 2024, during which sales contracted by 20% for the second consecutive quarter.
The strategic overhaul marks the latest iteration of the 169-year-old retailer. Schulman joined in July from Michael Kors, becoming the brand’s fourth CEO in the last decade.
This is a breaking news story. Please check back for updates.