Burberry's comparable store sales plummet 21% as new boss named

Burberry Group reported on Monday retail revenue of £458 million ($594 million) for the 13 weeks ended June 29, compared to £589 million last year, and announced a new chief executive.

Comparable store sales were down 21% for the period.

The British luxury group noted that if the slowdown trend continues through the current quarter, it expects a first-half operating loss, and fiscal 2025 operating profit to be below current consensus.

The group anticipates wholesale revenue to decline by around 25% in first half and decline by around 30% for the full year.

"Our first quarter performance is disappointing. The weakness we highlighted coming into fiscal 2025 has deepened and if the current trend persists through our second quarter, we expect to report an operating loss for our first half. In light of current trading, we have decided to suspend dividend payments in respect of fiscal 2025," said Gerry Murphy, chair of Burberry.

Burberry also announced the appointment of Joshua Schulman as chief executive officer and executive director, replacing Jonathan Akeroyd. Joshua was previously CEO of US fashion brands Michael Kors.