British luxury fashion brand Burberry announced on Wednesday that it could eliminate up to 1,700 jobs as part of efforts to reduce costs, following a disappointing annual net loss.
The company reported a net loss of £75 million ($99.8 million) for the 12 months ending in March, a stark contrast to the £270 million profit it posted the previous year, according to a statement issued by the brand.
Despite the overall loss, Burberry, now under the leadership of CEO Joshua Schulman, narrowly avoided a loss for its 2025 financial year. It recorded an adjusted operating profit of £26 million ($34.55 million), surpassing analysts’ expectations, which had forecasted a £11 million profit.
Schulman, who took over the reins last year, has been leading a major turnaround strategy for the brand. His shift in focus towards Burberry’s iconic trench coats and scarves came after the brand struggled with product missteps, steep price hikes, and a broader downturn in the luxury market.
Sales figures showed that Burberry’s fourth-quarter comparable sales were down 6%, slightly better than analysts’ forecast of a 7% decline. Schulman expressed optimism, stating that improvements in brand sentiment would lead to more frequent and expansive campaigns as the Autumn and Winter collections hit stores.
Sales performance across various regions also revealed challenges: the Americas and Europe, the Middle East, India, and Africa (EMEIA) both saw declines of 4% compared to the previous year, while sales in the Asia Pacific region dropped by 9%.
