Offering a glimmer of hope for the turnaround plan of Joshua Schulman, CEO, iconic British fashion house, Burberry reported a lower-than-expected sales decline in Q3, FY25.

The brand’s sales declined by 4 per cent during the quarter ended December 2024 as against the 12 per cent decline predicted by analysts. While sales in Asia and Europe declined, Americas registered a 4 per cent rise in sales, mirroring a broader luxury spending surge in the US

Having joined Burberry in July after the exit of Michael Kors, Schulman has been implementing a ‘course correction’ strategy to revive the brand. This includes streamlining stores and refocusing on core product categories.

While challenges remain, analysts are cautiously optimistic about the strategy. As per RBC analysts, the strategy has had a positive impact on inventory clearance, and renewed focus on core products.

The results come amid a broader luxury market rebound. Richemont, Owner, Cartier, recently reported record-high quarterly sales.

Burberry's efforts to clear out inventory through substantial discounts have helped boost sales and manage stock levels effectively, says Mamta Valechha, Consumer Discretionary Analyst.

This positive news follows a period of underperformance for Burberry, marked by declining sales and several leadership changes. Schulman's turnaround plan, though in its early stages, has instilled renewed investor confidence.