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The British company’s sales are down 15% with a net loss of £75 Million
Financials
28 May, 2025
Table of contents
Burberry Group, Plc. released its preliminary financial results for the 52 weeks ending 29 March 2025 on 14 May 2025. The year marked a pivotal period of strategic reset for the British heritage brand as it grappled with a challenging macroeconomic backdrop and operational headwinds.
Following a significantly weaker first half, Burberry introduced its transformation strategy, Burberry Forward, aimed at reinvigorating the brand’s luxury positioning and streamlining the business. The group closed FY2025 with revenue of £2,46 billion, down 15% at constant exchange rates (CER), and posted an adjusted operating profit of just £26 million, down from £418 million in the previous year.
Despite this, Burberry’s second-half momentum suggests that early interventions—particularly around brand narrative, assortment rationalisation, and merchandising—are beginning to resonate with consumers.
| Metric | FY2025 (£m) | FY2024 (£m) | Change (CER) |
|---|---|---|---|
| Revenue | 2461 | 2968 | -15% |
| Adjusted Operating Profit | 26 | 418 | -88% |
| Adjusted Operating Margin | 1% | 14,1% | 13,1% decline |
| Reported Operating (Loss)/Profit | -3 | 418 | -101% |
| Net (Loss)/Profit | -75 | 270 | -128% |
Burberry’s adjusted operating profit fell sharply from £418 million in FY2024 to just £26 million in FY2025, a decline of £392 million, or 88%. This drop signals that the company earned much less from its core operations after covering its direct and indirect costs, even before interest and taxes. The adjusted operating margin, which shows how much profit is made from every pound of revenue, also declined drastically from 14,1% to 1%, revealing a major contraction in efficiency and profitability.
Several factors contributed to this decline:
- Higher discounting and inventory clearance to reset stock levels and improve future positioning
- Macroeconomic headwinds, especially in Asia-Pacific and EMEIA regions, reducing overall demand
- Increased restructuring costs as Burberry initiated its transformation strategy, Burberry Forward
Despite this profit drop, Burberry maintained a positive cash flow of £65 million, meaning the business still generated more cash than it spent during the year. This is a crucial signal of financial health because it shows the company can fund operations, invest in future growth, and manage debt, even in a challenging period.
Burberry’s total revenue of £2,46 billion was primarily driven by retail, which comprised 87% of sales. Comparable retail sales declined 12%, with marked regional disparities:
| Region | FY2025 (£m) | FY2024 (£m) | % Change (CER) |
|---|---|---|---|
| Asia Pacific | 1043 | 1286 | -16% |
| EMEIA | 842 | 1017 | -16% |
| Americas | 510 | 603 | -13% |
Asia Pacific saw the steepest contraction, particularly in South Korea (-18%) and South Asia Pacific (-28%), while Japan grew 1%, buoyed by tourism. In EMEIA, UK performance remained weak, hindered by the post-Brexit VAT refund policy. The Americas showed relative resilience with a 9% annual drop and signs of improvement in Q3 and Q4.
Channel performance:
- Retail: £2.076 million (-11% CER)
- Wholesale: £319 million (-35% CER), reflecting strategic partner rationalisation
- Licensing: £66 million (+9% CER), led by fragrances
Burberry’s outerwear and scarves outperformed, while leather goods lagged behind. The company realigned pricing and assortment as part of its repositioning.
| Product Division | FY2025 (£m) | FY2024 (£m) | % Change (CER) |
|---|---|---|---|
| Accessories | 841 | 1 055 | -18% |
| Womenswear | 718 | 860 | -14% |
| Menswear | 732 | 842 | -11% |
| Childrenswear & Other | 104 | 149 | -28% |
Launched in November 2024, Burberry Forward is the company's roadmap to revitalise brand desire and return to profitable growth. It focuses on reasserting Burberry’s identity as a symbol of Timeless British Luxury, with clearer product direction, improved visual storytelling, and operational agility.
During the second half of FY2025, Burberry launched successful campaigns such as “It’s Always Burberry Weather” and hosted its Winter 2025 runway show at Tate Britain, both designed to reinforce its heritage codes and connect emotionally with global consumers.
Burberry also streamlined its product assortment to focus on signature categories like outerwear and scarves, introduced digital merchandising upgrades, and began rebalancing price positioning in key segments.
Burberry’s brand identity has been significantly shaped by its creative leaders over the last two decades:
Although detailed FY2025 ESG data was not included in the preliminary release, Burberry continues to advance its sustainability agenda.
Achievements and Ongoing Focus:
- Maintains commitment to net-zero emissions and SBTi-aligned climate targets
- Sustained investment in sustainable materials and packaging
- Development of circular business models, including product care and recycling initiatives
Burberry has previously reported its use of 100% renewable electricity across key sites and continues to integrate sustainability KPIs into business decision-making. Further disclosures are expected in the full FY2025 annual report.
FY2025 marked a year of recalibration for Burberry. The group exited the year with:
- Free cash flow of £65 million
- Cash reserves of £708 million
- Net debt of £30 million before lease liabilities
No dividend was proposed for FY2025 as the group focuses on internal reinvestment. For FY2026, Burberry is prioritising:
Read the full Burberry Group report Here.
Read the full Burberry Brand report Here.