British luxury fashion label Burberry said Wednesday that it could shed up to 1,700 jobs to reduce costs as it fell into an annual net loss.
Net loss stood at £75 million ($99.8 million) in the 12 months to the end of March, compared to a profit of £270 million one year earlier, Burberry said in a statement.
Burberry, in the early stages of a turnaround plan led by CEO Joshua Schulman, narrowly avoided a loss for its 2025 financial year with an adjusted operating profit of 26 million pounds ($34.55 million), beating analysts’ estimate of 11 million pounds.
Schulman took over last year and shifted Burberry’s strategy and marketing to focus more on trench coats and scarves after the brand was bruised by product missteps, excessive price hikes, and a broader luxury downturn.
Fourth-quarter comparable sales were down 6%, better than analysts’ average forecast for a 7% decline.
“With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store,” Schulman said in a statement.
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Sales in the Americas and Europe, Middle East, India and Africa regions both declined by 4% compared with last year, while sales in Asia Pacific were down 9%.
