Burberry's Profit Slumps 34% as Luxury Demand Slows

A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
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Burberry's Profit Slumps 34% as Luxury Demand Slows

A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls
A person walks past a Burberry store undergoing refurbishment on New Bond Street in London, Britain, March 11, 2023. REUTERS/Henry Nicholls

Britain's Burberry reported a 34% drop in annual operating profit on Wednesday after it faced the challenge of repositioning its brand to take it more upmarket against a backdrop of slowing luxury demand.
It said its like-for-like sales fell 12% in the final quarter, wiping out gains made earlier in the year, Reuters said.
Chief Executive Jonathan Akeroyd said that while the financial results underperformed the company's original expectations, it had made good progress refocusing its brand.
"We are using what we have learned over the past year to fine tune our approach, while adapting to the external environment," he said, adding that he remained confident Burberry could be the "Modern British Luxury" brand.
He said Burberry expected the first half of its current financial year to remain challenging, but it expected to see the benefit of the actions it was taking from the second half.



UK Fashion Group ASOS Names New Finance Boss 

ASOS is navigating a changing competitive landscape, with rivals Shein and Temu gaining ground in its core markets of the UK and the United States in recent years. (AFP)
ASOS is navigating a changing competitive landscape, with rivals Shein and Temu gaining ground in its core markets of the UK and the United States in recent years. (AFP)
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UK Fashion Group ASOS Names New Finance Boss 

ASOS is navigating a changing competitive landscape, with rivals Shein and Temu gaining ground in its core markets of the UK and the United States in recent years. (AFP)
ASOS is navigating a changing competitive landscape, with rivals Shein and Temu gaining ground in its core markets of the UK and the United States in recent years. (AFP)

British online fashion retailer ASOS on Tuesday named Aaron Izzard, director of group finance, as its new CFO as the current finance boss, Dave Murray, will be stepping down on June 30 to pursue other opportunities.

Murray, a former Amazon executive who joined ASOS as CFO in April 2024, will remain with the company for a handover period, ASOS said.

Izzard, who joined ASOS as head of retail finance in 2017, has held several finance roles at the company over more than eight years. His appointment will be effective July 1.

Since the end of April 2024, when Murray took up the role of CFO, ASOS shares are down roughly 8% as of Monday's close.

ASOS is navigating a changing competitive landscape, with rivals Shein and Temu gaining ground in its core markets of the UK and the United States in recent years.

However, the British retailer could benefit from new headwinds facing its Chinese competitors, including high US import tariffs under President Donald Trump and changes to customs rules on direct-to-consumer shipments in both countries.

In April, ASOS said it was well-positioned to withstand the impact of the US tariffs and reported a rise in half-year earnings, signaling early progress in efforts to revive its fast-fashion appeal among younger shoppers.