British luxury fashion house Burberry Group (OTC:BURBY) reported a decline in retail revenue for the third-quarter ending on December 28, 2024.

The company saw a 7% drop in revenue, totaling 659 million Euros ($690.7 million), compared to 706 million Euros in the same period the previous year.

The decline was driven by a 4% fall in comparable store sales with currency fluctuations contributing a further 4% headwind.

The Americas saw a 4% growth, spurred by increased local spending, particularly in the New York City area where the brand focused marketing efforts around its refurbished 57th Street store.

In contrast, the EMEIA region experienced a 2% decline, with both locals and tourists contributing to the drop.

The Asia Pacific region saw the most significant decline at 9%, driven by a 19% drop in South Asia Pacific and a 12% drop in South Korea, despite a 4% growth in Japan and stable performance in Mainland China.

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In response to these challenges, Burberry implemented several initiatives as part of its strategic overhaul, including a brand reset featuring campaigns like "It's Always Burberry Weather" for outerwear and "Wrapped in Burberry" for the holiday season.

The company also upgraded its store displays and introduced a virtual scarf try-on tool to attract a wider luxury customer base.

“The acceleration of our core categories reinforces our belief that Burberry has the mostopportunity where we have the most authenticity and that our strategic plan will deliver sustainable, profitable growth over time,” said CEO Joshua Schulman.

FY25 Outlook: While acknowledging the uncertain macroeconomic environment, the company remains optimistic about a positive second half, expecting its strategic initiatives to help offset the first-half operating loss.

Price Action: BURBY shares closed higher by 4.60% at $13.18 on Thursday.

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Photo: Burberry NYC by Shutterstock