The Burberry company posted a third-quarter loss of $1.9 billion, or $0.24 per share, in the latest quarter.
The company also reported a decline in the number of stores selling the brand’s namesake brand of high-end clothing.
Burberry posted sales of $6.3 billion in the three months ended March 31.
The retailer’s sales dropped 1.2% year-over-year.
The loss is down from a $7.3 million loss in the same period last year.
The results came in at a time when the company was on the verge of a $25 billion merger with rival Louis Vuitton.
Burrell’s CEO, Steve Burrell, said the company is working to improve the brand, but also is focused on improving sales and expanding its footprint around the world.
“We have had a strong start to the year, and we have seen tremendous growth, with more than 70% growth in our sales, compared to our original forecast,” he said in a statement.
“The challenges ahead are very different, but we are making the most of them, working hard to improve our brand and our customers.”
The sales decline is expected to help offset the sales of the Burberry line.
The business is expected increase its profit margin by about 30% this year.
But the company will be on the hook for billions of dollars in goodwill that is expected in the form of a long-term license for Burberry’s signature brand, the Burrell name and the Burro brand.
Burlbur said the cost of a brand is measured by its value to its customers and is a “big, expensive decision” that should not be taken lightly.
Burrill said the brand is currently on a path to be profitable, but that “we have to take a long, hard look at it and see how we can make sure we don’t get stuck in this situation.”
He said the business is “very lean” and the brand will continue to grow.
Burwood and Burrell have been in a war of words for years, with Burroughs accusing Burrell of taking over the Burlbegs brand and claiming that the CEO was stealing the Burrough name.
Burrough’s company was bought by Louis Vuitties in 2017 for $2.5 billion.
The two companies have been at odds over ownership for several years.