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Burberry (BBRYF) just dropped its Q3 FY25 numbers, and let's just sayinvestors have a lot to process. Retail revenue slid 7%, lower than expected, to 659 million ($822 million), with Asia Pacific taking the biggest hit (-9%) while the Americas held up with a 4% gain. CEO Joshua Schulman is still betting big on his "Burberry Forward" turnaround plan, doubling down on core products like outerwear and scarves. The "It's Always Burberry Weather" and "Wrapped in Burberry" campaigns have sparked some brand momentum, but with macroeconomic uncertainty still looming, the question iswill it be enough?
The stock, meanwhile, has been on a wild ride. Burberry just fell out of the FTSE 100 after hitting a 15-year low, which naturally kicked up takeover chatter. Moncler's name has been thrown around, but for now, potential buyers seem to be waiting for proofeither that Schulman's plan is working and the stock is still undervalued, or that it's flopping and they can swoop in for a bargain. If anyone's serious about making a move, they'll need to act fast before the turnaround picks up real momentum.
And investors? They might already be buying in. Right after Burberry's latest update, shares ripped 15.7% higher. Analysts had expected a 12% comparable sales decline, but Burberry only reported a 4% decline, signaling improvement. The brand is still in the trenches, but if Schulman can pull off this reinvention, Burberry could be setting up for a major comeback in the luxury game.
This article first appeared on GuruFocus.