finance
Burberry Swings to Annual Profit but Shares Fall on Europe Weakness
Burberry swung to pretax profits of $66.2 million in the year ended March 28, reversing an $89.2 million loss, as its new Cotswolds handbag line drove the strongest bag performance since 2023. CEO Joshua Schulman attributed the gains to American demand for recognizable luxury at accessible prices. Shares fell after the earnings release despite 10% sales growth in the Americas and China.
May 14, 7:28 AM·2m read1 source
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U.S. shoppers and helped drive the company’s strongest bag performance since 2023. 2 million for the year ended March 28.
2 million loss the prior year. 2 billion on a constant currency basis while comparable sales rose 2% for the year. Joshua Schulman, who became CEO of Burberry in 2024, said the bags have resonated particularly well with American consumers seeking recognizable luxury at more accessible price points.
“We’ve hit a sweet spot on price and value for money in a luxury context,” Schulman said. “During Mother’s Day in North America the customer has been responding to our vintage check introductions and Cotswolds lines,” he added.
U.S. Travelers’ growing fascination with the Cotswolds region of England, sometimes called the Hamptons of England. Schulman said a revival has been led by core categories of scarves and outerwear. Ready-to-wear sales had now taken off, handbag demand was beginning to improve and the brand was seeing strong attraction among younger consumers.
In the latest quarter Burberry posted 10% sales growth in both the Americas and China. The Middle East accounts for roughly 2% of Burberry’s sales. Citigroup analysts described Burberry’s latest results as evidence that execution is firmly on track.
The company has now delivered three consecutive quarters of improvement. Schulman said he remains confident the company can exceed its long-term revenue ambitions. 05 billion] sales milestone and go beyond that,” he said.
