Burberry recovery weighed down by Iran war impact

* Burberry sales up 5% in Q4, up 2% for full year

* Sales in EMEIA ​down ‌2% in Q4 due to Iran war, tourism impact

* CEO Schulman says this year is "inflection ⁠point"

May 14 (Reuters) - Burberry reported higher fourth-quarter sales on ⁠Thursday as the British luxury ​brand's turnaround gathered pace in the U.S. and China, but the Iran war and weaker tourism dented revenue in its core Europe and Middle East region. A hit to global ​travel ‌and surging energy costs have dashed hopes of a recovery for the $400 billion luxury market this year, squeezing profits and deepening a downturn that followed the post-pandemic boom.

Burberry reported comparable retail sales growth of 5% in the three-month period ended ​March 28, bringing annual growth to 2%, in line with analysts' expectations in ‌a company-compiled poll.

But its sales in the Europe, Middle East, India and Africa (EMEIA) region fell 2% in the fourth ‌quarter, while the Americas and Greater China both grew 10% thanks to what the company called "reignited brand momentum". CEO Joshua Schulman has steered Burberry's recovery since taking over in ​July 2024, focusing on its signature trench coats and scarves and reinforcing the 170-year-old brand's British heritage ‌with younger shoppers, while cutting costs.

A year after Burberry laid off 1,700 staff - a fifth of its global workforce - in a cost-cutting drive, Schulman said on Thursday ⁠that ⁠this financial year marked a "meaningful inflection point" as the company ‌returned to profitable sales growth.

Operating profit for the year was 115 million pounds, rebounding from a loss ​of 3 million ​pounds in the previous year.

Burberry also said that ‌Chair Gerry Murphy will be retiring later in the year, and will be succeeded by William Jackson.

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