Burberry Returns to Profit After 2-Year Turnaround Plan

On 14 May, Burberry announced that it had returned to profit in its latest fiscal year, citing a cost-cutting plan launched at the end of 2024 as the reason for its success.

Net profit stood at US$28 million in the year to the end of March, compared with an after-tax loss of £75 million the year prior, Burberry said in a statement.

Discussing the growth, Burberry CEO Joshua Schulman says: “This financial year marks a meaningful inflection point for Burberry.

“Our strategy is working and there are clear opportunities for further growth.”

In its guidance for the year ahead, the company states it reminds shareholders to be “mindful of the uncertain geopolitical and macroeconomic environment and its potential impact on consumer confidence”.

New sales strategies in the global market

In 2024, the company put together a financial turnaround plan with the aim to boost sales and cut costs as the luxury goods sector saw less demand in larger economies like China.

Under Joshua, who was brought on as CEO in July of the same year, the company has realigned its focus on staple outerwear, including its acclaimed trench coats, in an effort to increase profits.

Joshua took over the CEO position from Jonathan Akeroyd, who left the group following weak financial results that some investors put down to poor strategy planning.

Subsequently, comparable store sales grew 2% in the full year, lifted by sales in Burberry’s key China market and in the Americas.

Despite the financial optimism, Burberry shares fell 2% in morning trading on May 14.

Richard Hunter, Head of Markets at Interactive Investor, discussed Burberry’s growth and challenges to come, saying: “The shares are ahead by 31% since the appointment of [Joshua].

“However, there remains something of a mountain to climb, such that investors are ready to accept but are not yet fully convinced of a sustained recovery, as evidenced by a surprisingly downbeat reaction to the numbers.”

New board leadership

The day of the results announcement, Burberry said that company Chairman Gerry Murphy will retire in November and will be succeeded by William Jackson, founder of the private equity firm Bridgepoint Group.

William will join as a non-executive director from 1 July 2026 and will stand for election at the annual general meeting on 15 July 2026. He was selected following a search process led by Burberry’s Senior Independent Director Orna NiChionna.

Discussing his promotion, William says: “I am deeply honoured to join this iconic British brand. Burberry has strong foundations, a clear strategic direction in [our value creation strategy] Burberry Forward, and a talented executive team led by Josh Schulman. 

“I look forward to working closely with Josh and the Board to build on this momentum and realise Burberry's full potential.”

Additionally, Gerry praised the announcement of his successor and discussed his time as company chair, saying: “It has been a privilege to serve as chair of this extraordinary 170-year-old brand since 2018. 

“I would like to thank board members past and present for their unwavering commitment and continued support. I am very confident that, under William's and Josh's leadership, this unique and special business is well positioned for the future.”