BRBY: New CEO & Yet More Bad News for the Troubled Retailer
(LON: BRBY) Burberry Q1 FY25 Trading Update
It was hard to imagine a worse first quarter for Burberry. At a time when investors were desperate for some positive news following a torrentially bad fiscal 2024, Burberry’s Q1 trading update emphasised a “luxury market that is proving more challenging than expected” with the weakness highlighted coming into FY25 having “deepened”. Retail revenue for the quarter of £458 million came in 22% below the prior year. Wholesale revenues are now expected to decline 30% by year’s end. Comparable store sales declined double digits across Asia (-23%), the Americas (-23%) and EMEIA (-16%). The only bright spot continued to be Japan. Benefiting from tourism thanks to a weakened Yen, Japan was the only region with positive comparable store sales in Q1, up 6%. Positive, but a marked deceleration from last year. Shares were down as much as 18% on the morning; levels not seen since 2010.
Burberry’s turnaround is moving at a glacial pace. So much so, that…