Burberry: Q4 sales hit by Iran war-related tourism slowdown

May 14 (Reuters) – Burberry reported a rise in fourth-quarter sales on Thursday as its recovery accelerated in the United States and China, but the war in Iran and a slowdown in tourism weighed on revenue in its key region, Europe and the Middle East.

The blow to the global travel sector and soaring energy costs have undermined hopes of a recovery in the $400 billion (€341.53 billion) luxury market, reducing profits and deepening a recent slowdown. years after the post-pandemic boom.

Burberry reported a 5% rise in comparable sales for the quarter ended March 28, bringing annual growth to 2%. These figures correspond to analyst forecasts according to a consensus established by the company.

But its sales in the Europe, Middle East, India and Africa (EMEIA) region fell 2% in the fourth quarter, while those in the Americas and Greater China both rose 10% thanks to what the company called a “renewed brand momentum.”

Since arriving at the helm of Burberry in July 2024, CEO Joshua Schulman has orchestrated the brand’s turnaround with a focus on its iconic gabardines and scarves, while reinforcing the British heritage of the 170-year-old brand with a younger customers, and reducing costs.

A year after Burberry laid off 1,700 employees – a fifth of its global workforce – as part of a cost-cutting plan, Joshua Schulman said on Thursday that this financial year marked a “decisive turning point” as the company returned to profitable sales growth.

Operating profit for the year was £115 million (€132.69 million), after posting a loss of £3 million the previous year.

Burberry also announced Thursday that its chairman, Gerry Murphy, would retire later this year and be replaced by William Jackson.

(Edited by Pushkala Aripaka in Bangalore and Helen Reid in London; Version in French by Rihab Latrache, edited by Augustin Turpin)