BURBERRY Group Plc said it will streamline front-office and certain retail functions to cut costs, including the loss of 500 jobs, after global lockdowns caused sales to fall by almost half in the latest three months.
The British fashion house said comparable retail sales fell 45% in the quarter, which was slightly better than analysts expected. Covid-19 prompted luxury boutiques to be closed around the world, and in some markets consumers are only now venturing back onto shopping streets.
Burberry shares fell as much as 6.7% early Wednesday in London.
The 55 million pounds ($69 million) in new savings comes on top of a previous 140 million-pound target. Burberry said it plans to cut 500 jobs globally, including 150 office positions in the U.K. That represents about 4% of the company’s headcount in Britain.
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