Burberry Group posted lower revenue in the 26 weeks that ended September 28, which the company blamed on inconsistent brand execution and a lack of focus on the core outerwear category and customer segments.

The footwear retailer’s revenue declined 22 per cent to £1.09 billion (US$1.38 billion) while swinging to an operating loss of £53 million.

Retail revenue fell 21 per cent to £885 million while wholesale revenue plunged 30 per cent to £169 million. Licensing revenue increased 3 per cent to £32 million.

“Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a
return to sustainable, profitable growth,” said Joshua Schulman, Burberry CEO.

“Now, we have a clear framework to reignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry’s best days are ahead.”

The company noted it is still early to determine whether its second-half results will fully offset its first-half adjusted operating loss.

Burberry Group said it is confident it will return to generating £3 billion in revenue over time.