The iconic British label joins the likes of Kering and LVMH which have also reported decreased revenues.
In yet another chapter of the continuing saga of luxury brands’ woes, Burberry recently announced that it would cut as much as 20% of its workforce, the equivalent of about 1,700 jobs worldwide. This includes the laying off of the entire night shift at its Yorkshire raincoat factory, The Guardian reports.
The announcement comes amid struggling sales in its 2025 financial year. According to the New York Times, the label’s operating losses were at $4 million, down from a $558 million profit the year before. Revenue was down 17 percent to $3.4 billion. With this measure, the company is hoping to save about $80 million.
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This is not the first time The POST has reported on a luxury brand struggling with diminishing sales. In fact, Burberry is not alone in this predicament. Last month, fashion giant Kering—owner of distinguished brands such as Gucci, Yves Saint Laurent, and Bottega Veneta—also revealed that it saw its first quarter revenue dip 14%. Its flagship label, Gucci, was also dealt a serious blow, with revenues dropping a staggering 25%.
Almost a year ago, The POST also ran a story on Burberry replacing its CEO Jonathan Akeroyd because of “disappointing results.” With this news of impending layoffs, it looks like there is no end in sight just yet for the iconic British fashion label’s financial struggles.
LVMH, the luxury group which owns labels such Louis Vuitton, Dior, Bulgari and Tiffany & Co, has also been reported to have missed its first quarter revenue forecast, registering a 3% decline in sales, Reuters reported. The Bernard Arnault-owned conglomerate saw its New York-listed depositary receipts fall by as much as 7.5% after the results were released.
These grim figures emerged amid an increasingly volatile industry as shoppers in the United States and China continue to hold back on purchasing luxury goods (fashion, beauty, and drinks, included), a symptom of a broader malaise due mainly to geopolitical anxieties, coupled with fierce competition against fast fashion labels.
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Zooming in on Burberry’s struggles, The Guardian reports that the fashion house has already been struggling in recent years because of the weak luxury market and a “series of short-lived attempts to revive the brand with different designers.” This led to the company hiring Joshua Schulman, the former top honcho of American fashion brands Coach and Jimmy Choo, as chief executive last year in an attempt to reverse its fortunes.
Upon assuming the post, Schulman trained Burberry’s focus on “marketing Britishness” and selling more trench coats and scarves. “The customers we want to grow, who have been declining for three years, are now excited about what they see,” Schulman said in a presentation to investors.
The only good news to come out of Burberry’s latest bleak announcement is its shares jumping by as much as 18%, as mentioned in a separate Reuters report.
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