Marking a challenging start to fiscal 2025, UK-based luxury fashion house, the Burberry Group reported a 22 per cent Y-o-Y decline in revenue during Q1, FY25. The brand’s revenue plummeted to £458 million while it also registered a 21 per cent decline in comparable store sales during the quarter with all regions except Japan experiencing declines.
In the Asia Pacific region, the brand’s sales dropped by 23 per cent, with sales in Mainland China declining by 21 per cent and those in South Asia Pacific facing a substantial 38 per cent decline. The brand’s sales in South Korea decreased by 26 per cent during the quarter while in sales in Japan rose by 6 per cent owing to increased expenditure on tourism by the country, particularly on tourists from Chinese and other nearby Asian countries.
The Americas region also struggled with a 23 per cent decline in sales as local customer spending reduced. Similarly, the Europe, Middle East, India, and Africa (EMEIA) region saw sales decline by 16 per cent, with local spending deteriorating compared to the previous quarter. Tourist spending, which constituted a significant portion of retail revenues, experienced a high single-digit percentage decline.
Despite these challenges, certain product categories such as outerwear and scarves performed well globally. Citing the company’s swift adaption amid a tougher luxury market, Gerry Murphy, Chairman, warned of a potential operating loss for the first half of the fiscal year if current trends persist through Q2.
