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Burberry axes up to 290 to guard profits
Rosamund Urwin3 Feb 2009
Fashion house Burberry today said it is axeing up to 290 UK jobs to protect profits.
The luxury goods group is closing its sewing factory in Rotherham, South Yorkshire, as demand sinks for its traditional trench coats.
Operations will now be focused on its plant in Castleford, West Yorkshire.
Burberry, famed for its check design, was locked in a row with unions in 2007 when it decided to shut its polo-shirt factory in South Wales.
Burberry said like-for-like retail sales fell 3% in the final three months of 2008 but total revenues rose 9% to £329 million, boosted by heavy discounting in December and an influx of tourists into its London stores, tempted by the weak pound.
“In a difficult and volatile environment, our performance has been very satisfactory, with menswear and childrenswear doing particularly well,” chief financial officer Stacey Cartwright said.
Burberry forecasts a decline in the “high single digits” in revenue at its wholesale arm in the second half of the year as US stores reduce orders.
