Burberry to Cut 1,700 Jobs on Persisting Luxury Demand Downturn

I think Burberry is on the right track now with Daniel Lee,

says Armstrong

Charlie Hugginsmember of the State Senate of Alaska

Almost everything that could go wrong did,

Huggins says

These results are very disappointing, ... but every brand is going through a hard time at the moment, even houses like Chanel are not having the stellar growth that they were post-pandemic when so many brands were growing unsustainably.”

says The Telegraph’s head of fashion, Lisa Armstrong

Akeroyd’s departure last summer really shook the team,

a brand insider tells The Telegraph

Sarah Storeydame

Creative Director Daniel Lee put his best foot forward with a very British take on cosy opulence,

said The Telegraph’s acting fashion director Sarah Bailey of the collection at the time

There was such a buzz about Burberry beauty when it launched in 2010, because it was the first big-time British fashion house to launch a beauty range,

says one source in the industry

Although the most onerous tariffs have been rolled back, consumer confidence in China, which has been the powerhouse for luxury brands, will take time to be restored, which could also slow down Burberry’s progress.”

She added

Burberry is dealing with difficult conditions in the mid-market luxury sector,

Susannah Streeter, a senior analyst at investment platform Hargreaves Lansdown, wrote in a note Wednesday

For a long time we have had overcapacity at that facility, and that is simply not sustainable,

Mr Schulman said

Luxury consumers across the globe significantly tightened their belts hitting the whole luxury sector. But Burberry has seen more impact than most,

he said

Burberry will want to consign the past year to the history books as soon as possible, when the change of chief executive, suspension of the dividend and first-half loss sent the shares into a tailspin

Richard Hunter, head of markets at Interactive Investor, said

With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store.

Schulman said in a statement

Overall, the group is far from being out of the woods, but the immediate impact of “Burberry Forward” is a highly encouraging sign

He added

Significant" investment in the facility will be made, however, as the ambition is to scale up British production "over time

Mr Schulman said

Clearly, the external environment has become more challenging since mid-February

Mr Schulman told investors

We don't have a store closing programme, per see,

Mr Schulman told investors

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.”

Mr Schulman said