Despite the fact that revenues are still declining, investors say they are happy with the initial indications of recovery one year after Josh Schulman was appointed CEO of Burberry with the goal of turning around the British luxury company.
Known for its iconic trench coats and scarves with check patterns, Burberry is only beginning a makeover as Schulman tries to turn around years of poor performance and boost sales and profits.
According to a consensus given by Burberry, analysts anticipate the business to announce on Friday that comparable retail sales decreased 3% in the April–June quarter compared to a year earlier. Compared to a 6% decline during the January–March period, that would represent an improvement.
Under former CEO Jonathan Akeroyd, Burberry issued a series of profit warnings. Schulman claimed that after assuming control, the company had strayed too far into a niche aesthetic and abandoned its emphasis on outerwear and identifiable British allusions.
Since Schulman took over, its stock has increased by almost 63%, outpacing its luxury counterparts. In recent weeks, analysts have been more upbeat; according to HSBC, Burberry has the chance to overtake competitors in the market.
Typically, Burberry makes more money in the autumn and winter months. With its most recent “Burberry Festival” promotion scheduled to take place during the Glastonbury music festival, it has been attempting to capitalise on significant British summer events.
