Embattled Burberry announces new turnaround steps even as sales fall less than expected

Burberry on Wednesday announced a slew of organizational changes, amid continued turnaround efforts at the embattled luxury house.

The company said the measures could lead to a "reduction in people-related costs which could impact around 1,700 roles globally" over the lifetime of the program, set to complete in 2027.

Burberry sales fell slightly less than expected in the fiscal fourth quarter, down 6% in the three months to March. Analysts had anticipated a 7% decline in a company-compiled consensus estimate.

For the fiscal year, sales were down 12% versus an anticipated 13% decline. Total revenue for the year was £2.461 million ($3.273 million), slightly ahead of an estimated £2.451 million.

Sales fell across all regions over the year and the quarter, led by weakness in Asia-Pacific. Sales in the Americas — which had been a bright spot of positive perfomance in the third quarter — swung to a 4% loss in the three months to end the fiscal year.

Burberry had previously flagged the U.S. as a bright spot in third-quarter sales. However, the fashion house said Wednesday that "current macroeconomic environment has become more uncertain in light of geopolitical developments."

"While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time," Burberry CEO Joshua Schulman said in a statement.

The company did not provide specific guidance on the estimated impact of U.S. tariffs. It flagged an "increase in geopolitical tension which leads to incremental unmitigated tariff risks compared to the central planning scenario" as a key downside risk.

This is a developing story. Please check back for updates.