Burberry to Cut Costs, Tencent Reports Q1 Growth and Balenciaga Names New Deputy CEO
Burberry Announces Global Restructuring to Cut Costs
Burberry has announced a corporate restructuring plan expected to save an additional 60 million pounds by fiscal year 2027. The savings will mainly come from operational expenses, including procurement, real estate, and personnel costs. Around 1,700 roles worldwide may be affected, pending further consultation. The company noted it remains early in its transformation, and will focus over the next year on streamlining operations and improving productivity and cash flow amid ongoing economic uncertainty.
Tencent Reports Q1 Revenue Driven by AI-Powered Growth
Tencent reported Q1 2025 revenue of over RMB 180 billion, up 13 percent year-on-year, with non-IFRS operating profit rising 18 percent to RMB 69.3 billion. AI technologies contributed to gains in advertising, gaming, and enterprise services, supporting stronger profitability for the tenth straight quarter. The company expanded AI investments, including its proprietary models and products, while integrating AI into WeChat and other platforms. Tencent also advanced industry AI deployment and continued innovation in cloud and 3D model technologies.
On Running Reports Record Q1 Sales
Swiss sportswear brand On Running posted Q1 FY2025 net sales of CHF 726.6 million, up 43 percent year-on-year, with Asia-Pacific revenue surging 130.1 percent. Net income declined 38 percent to CHF 56.7 million, while gross margin rose to 59.9 percent amid stronger DTC performance. The company raised its full-year guidance, projecting at least 28 percent revenue growth at constant currency. On plans to increase U.S. prices in July and may expand pricing adjustments to other markets in 2026.
Samsonite Posts Lower Q1 Revenue Amid Global Demand Shifts
US luggage brand Samsonite reported Q1 2025 net sales of $797 million, down 7.3 percent year-on-year, with net profit falling 42.6 percent to $48.2 million. Sales declined across its key brands—Samsonite, TUMI, and American Tourister—due to softer consumer demand in Asia and North America, as well as timing shifts in wholesale channels. Gross margin dropped to 59.4 percent, reflecting regional sales mix changes. The company cited macroeconomic uncertainty as a major factor impacting consumer spending.
Ferragamo Q1 2025 Revenue Declines Amid Softer Asia Pacific Sales
Italian luxury brand Ferragamo posted 221 million euros in Q1 2025 revenue, down 2.6 percent year-on-year at current exchange rates. Direct-to-consumer sales fell, primarily due to weaker performance in the Asia Pacific region, while wholesale revenue rose 7.9 percent. The company focused on expanding its core leather goods and refining footwear collections. Broader macroeconomic conditions impacted overall store traffic and consumer activity.
Balenciaga Names Nathalie Raynaud Deputy CEO
Balenciaga has appointed Nathalie Raynaud as deputy CEO, following her tenure as chief product officer and head of accessories. She will report to CEO Gianfranco Gianangeli and guide product and brand strategy during the brand’s creative leadership transition. Raynaud brings experience from Dior, Louis Vuitton, Maje, and Lanvin.
Fondazione Prada Launches 1.5 Million-euro Annual Film Fund
Fondazione Prada has announced a new 1.5 million-euro annual film fund to support independent and auteur cinema. The initiative, led by Paolo Moretti and Rebecca De Pas, will fund 10–12 films each year across development, production, and post-production stages. The fund continues the foundation’s two-decade engagement with cinema, which includes screenings, restorations, and collaborations with filmmakers like Wes Anderson. The first call for entries will open this fall.
Mytheresa Reports Q3 Sales Growth and Strategic Updates
Mytheresa reported a 3.8 percent year-over-year increase in Q3 net sales to 242.5 million euro and an adjusted net income of 5.4 million euros. The company saw strong performance in Europe and rising average order values.The fourth quarter of fiscal 2025 is expected to add another 300 million to 350 million euros in net sales. Following its merger into the LuxExperience group and the acquisition of Yoox Net-a-porter, Mytheresa will begin reporting under a new structure in Q4 FY2025. Leadership changes and integration efforts are underway to align with the group’s broader strategy.
