Burberry takes 1,700 jobs because the Turnaround plan began to slowly reap the results

Burberry showed the promise of healing from the luxury market. But now the British Marquee Trench coat producer should lick the wounds a little longer in the slow combustion of the tournament plan.

On Wednesday, the company in London, in March 29, the 12% decrease in sales, he said higher than analytical expectations. At the same time, his participation benefit was 26 million TL against £ 418 million, which reflected the terrible situation of his work.

“When we are in the first stages of our continued time and in the first stages of our continued time, we will give Burberry’s best days in advance and a constant profitable growth.”

Burberry is several months that saves the costs announced in November “course correcting“And to improve the brand’s activities. The main strategy of the Turnaround plan was to lose more weight from Burberry’s Forte, which includes foreign clothing such as trench coats and scarves.

According to the company, Burberry also plans to work 18% of the workforce and 18% of the workforce and 18% of the 2,700 role.

The British company said the so-called Burberry IRELI plan began to fill the brand, although the first half of the year dragged its lower performance.

The Burberry will save 60 million TL by the financial year of 2027.

Difficulties have no pearls

Although Burberry has given better results than expected, the company faces many different problems with other luxury players and others.

Analysts stressed the impact of US tariffs to the appetite for confidence and luxury goods to consumers of tension. The wider luxury sector has been concerned about celebrating the consumer confidence in the last two years, which has recently shown signs of return.

Contributes Burberry’s work in Asia Pacific 44% Struggles because of the revenue and luxury slowed. Meanwhile, hours in the United States More powerful performance In the third quarter, investors encouraged the luxury could finally become a corner. Although it is better than expected in the fourth quarter, the American contract increased sales by 4%.

In turn, the reduction strategy of Burberry’s main product campaigns can help strengthen the brand’s charm, but lift the single and can not lift the sale.

“Burberry’s signature trench coat, as an undisputed icon, a business problem, unlike a lifelong product, unlike a lifelong season, wrote an analytical on the third bridge, Wednesday.

Separately, Burberry’s “high” price strategy, buyers also rely on when buyers squeeze their walls.

Schulman acknowledged and to be “the brand’s rideinappropriate“What stopped. Schulman in July, after a while from the company lost its place England Benchmark FTSE 100 index.

Turnaround plan may take a while to reap results, but Deutsche bank analysts, led by the COCHRANE, wrote “Burberry’s story” and Burberry has made progress.

This story was first displayed Fortune.com

Source link