Core Viewpoint - The luxury brand Burberry has reported a significant decline in sales and profits for the fiscal year ending March 29, 2025, prompting a strategic restructuring plan to improve its financial performance and brand image [2][4][5]. Financial Performance - Burberry's sales decreased by 17% year-on-year to £246 million, with adjusted operating profit falling to £26 million, a 94% decline [4]. - The company recorded an operating loss of £3 million and a pre-tax loss of £66 million, compared to a sales revenue of £2.968 billion and a profit of £418 million in the previous year [4]. Strategic Initiatives - New CEO Josh Schulman has committed to accelerating the "Burberry Forward" transformation plan, focusing on enhancing brand expression and restoring sales, profit margins, and cash flow while controlling costs [5]. - The company plans to lay off approximately 1,700 employees, representing about 18% of its workforce, to achieve a cost-saving target of £60 million by 2027, supplementing a previously announced £40 million cost-saving plan [7]. Market Response - Despite the ongoing performance challenges, Burberry received a positive boost in the capital market, with Citigroup upgrading its stock rating to "Buy" for the first time in 17 years, indicating a recovery in investor confidence [9]. - Burberry's stock price rose by 9% following the earnings report, reflecting optimism about the company's long-term transformation potential [9].