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Burberry Returns to Profit as Schulman’s Turnaround Takes Hold

Management warned that geopolitics could test the early recovery.

Overview

  • Burberry, which reported results Thursday, posted £49 million pre-tax profit for the year to March and £21 million after tax, reversing last year’s loss.
  • Revenue fell 2% to £2.4 billion and the miss versus an £88 million pre-tax forecast knocked the shares in early London trading.
  • Management secured about £80 million in savings toward a £100 million goal as Joshua Schulman pushed a return to staple outerwear such as the trench coat.
  • Comparable-store sales rose about 2% for the year, with Greater China up around 4% and as much as 10% in the March quarter, and the Americas rising 4%.
  • Governance is shifting as chairman Gerry Murphy plans to retire with Bridgepoint founder William Jackson set to take the role in November.