Financial News
THIRD QUARTER TRADING UPDATE AND INTERIM MANAGEMENT STATEMENT
20 JANUARY 2009
Burberry Group plc, the global luxury company, today reports on trading for the three months to 31 December 2008.
- Third quarter revenue up 9% underlying (30% reported)
- Adjusted profit before tax for 2008/9 expected to be in line with guidance given at interim results in November 2008
- Total cost efficiencies of about £50m to underpin profitability in 2009/10
- £15-20m of efficiencies announced in November 2008
- An additional £30-35m of savings announced today, including restructuring of Spain and UK manufacturing
- Strong balance sheet with net debt of about £90m at the end of December, comfortably within the Group’s £260m banking facilities
Angela Ahrendts, Chief Executive Officer, said:
“Revenue at Burberry increased by 9% at constant currency (30% reported), in what remained challenging and volatile markets. There was an improved retail performance in December, albeit with continuing pressure on gross margin.
As we continue to evolve our business model, we have today announced further cost efficiencies. These are enabled in part by the investments we have previously made in supply chain, IT and infrastructure. These savings, coupled with our proven strategies, strong brand perception and conservative balance sheet position us to trade through the current difficult environment and emerge even stronger when the global economy recovers.”
Third quarter highlights (on an underlying basis*)
- Retail revenue up 12% (33% reported)
- Comparable store sales down 3%
- Improved performance in December, albeit with continuing pressure on gross margin
- Double-digit growth in Europe and Asia
- United States and Spain weak
- Wholesale revenue up 8% (28% reported)
- Supply chain improvements enabled earlier deliveries
- High single-digit percentage decline in H2 underlying wholesale revenue expected
- Licensing revenue down 8% (up 10% reported)
- Full year underlying licensing revenue expected to be down high single-digit percentage as demand in Japan softens
* Underlying change is calculated at constant exchange rates.
Enquiries
| Burberry | 020 3367 3524 | |
| Stacey Cartwright | Chief Financial Officer | |
| Fay Dodds | Director of Investor Relations |
| Brunswick | 020 7404 5959 | |
| David Yelland | ||
| Robert Gardener |
There will be a conference call for investors and analysts to discuss this update today at 9am (UK time). The conference call can be accessed live on the Burberry website (www.burberryplc.com), with a replay available later today.
Burberry will release its Second Half Trading Update for the six months to 31 March 2009 on 21 April 2009. It will announce its preliminary results for the year to 31 March 2009 on 20 May 2009.
Certain financial data within this announcement have been rounded.
The financial information contained in this Trading Update has not been audited. Certain statements made in this Trading Update are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.
This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares. Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.
View the Third Quarter Trading Update and Interim Management Statement in PDF format.
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