Financial News

INTERIM RESULTS

17 NOVEMBER 2009

Burberry Group plc, the global luxury company, today announces its unaudited results for the six months ended 30 September 2009.

Highlights

  • Solid business performance
    • Total revenue of £572m (2008: £539m)
    • Comparable store sales growth of 2% (Q2: 5%)
    • Adjusted profit before tax of £83m (2008: £95m)
      • Improved Q2 retail and gross margin performance
    • Profit before tax of £78m (2008: £97m)
  • Strong financial position at 30 September
    • Net cash of £56m (2008: net debt of £114m)
    • Tight management of inventory
      • Down 40% year-on-year at constant FX, to £215m
    • Interim dividend increased by 4% to 3.50p
  • Good progress on key growth strategies
    • Non-apparel 34% of revenue, up from 32% in H1 2008
    • Childrenswear 5% of revenue, up from 3%
    • Retail 54% of revenue, up from 45%
    • Emerging Markets 10% of revenue, up from 9%
  • Further progress on corporate initiatives
    • Japanese apparel licence amended to reduce term by five years and increase royalty income
    • Joint venture in India proposed, subject to government approval
    • Global cost efficiency programme fully implemented, resulting in full year savings of about £50m

Angela Ahrendts, Chief Executive Officer, commented:

"Burberry delivered a solid first half performance, reflecting the strength of the brand, business and team. We enter the second half confident in our core strategies, capitalising on product, region, channel and operational opportunities. The Board has increased the dividend to reflect the momentum in the business."

"Adjusted" refers to profitability measures (pre and post tax) calculated excluding:
1. Restructuring costs of £4.2m (2008: nil) relating to the Group’s cost efficiency programme.
2. Credit of £1.7m in 2008 representing negative goodwill on the formation of the Burberry Middle East joint venture.
3. Impact of prior year tax adjustment in 2008.

Underlying change is calculated at constant exchange rates.
Certain financial data within this announcement have been rounded.

Enquiries

Burberry   020 3367 3524
Stacey Cartwright EVP, Chief Financial Officer  
Fay Dodds Director of Investor Relations  

Brunswick   020 7404 5959
David Yelland    
Laura Cummings    

There will be a presentation today at 9am (UK time) to investors and analysts at the Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live on the Burberry website (www.burberryplc.com) and can also be accessed live via a dial-in facility on 44 (0)20 7081 7194. The supporting slides and an indexed replay will also be available on the website later in the day.

Burberry will update on trading on 19 January 2010 when it will issue its Interim Management Statement in respect of the Third Quarter.

Certain statements made in this announcement 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 full Interim Results Announcement in PDF format.

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