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.



Nike’s Longtime Design and Innovation Chief John Hoke to Retire

A view of the Nike shoes worn by Jalen Brunson #11 of the New York Knicks during the first quarter against the Indiana Pacers in Game Four of the Eastern Conference Finals of the 2025 NBA Playoffs at Gainbridge Fieldhouse on May 27, 2025 in Indianapolis, Indiana. (Getty Images/AFP)
A view of the Nike shoes worn by Jalen Brunson #11 of the New York Knicks during the first quarter against the Indiana Pacers in Game Four of the Eastern Conference Finals of the 2025 NBA Playoffs at Gainbridge Fieldhouse on May 27, 2025 in Indianapolis, Indiana. (Getty Images/AFP)
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Nike’s Longtime Design and Innovation Chief John Hoke to Retire

A view of the Nike shoes worn by Jalen Brunson #11 of the New York Knicks during the first quarter against the Indiana Pacers in Game Four of the Eastern Conference Finals of the 2025 NBA Playoffs at Gainbridge Fieldhouse on May 27, 2025 in Indianapolis, Indiana. (Getty Images/AFP)
A view of the Nike shoes worn by Jalen Brunson #11 of the New York Knicks during the first quarter against the Indiana Pacers in Game Four of the Eastern Conference Finals of the 2025 NBA Playoffs at Gainbridge Fieldhouse on May 27, 2025 in Indianapolis, Indiana. (Getty Images/AFP)

Nike's chief innovation officer, John Hoke, is retiring, the world's largest sportswear company said on Thursday.

Hoke, who joined Nike in 1992, has served as the company's chief design officer before being named chief innovation officer in 2023.

Earlier this month, Nike CEO Elliott Hill, who took the helm in October to lead a turnaround, had made several changes to the senior leadership team, including promoting insider Phil McCartney to be the new chief innovation, design & product officer.

Nike, in March, forecast a steeper than expected drop in fourth-quarter revenue, signaling caution as it works to rekindle consumer interest.

Bloomberg News first reported Hoke's retirement earlier on Thursday.