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Financial Highlights & KPIs

KPI Performance
Revenue growth* 
This measures the appeal of the Burberry brand to customers, through all our sales channels
FY 2017/18 revenue declined 1%*. Retail growth of 3% was offset by wholesale (-16%) reflecting the reduction in wholesale revenue following the Beauty licence with Coty. 
Measure
KPI Performance
Comparable sales growth
This measures the growth in productivity of existing stores. It is calculated as the annual percentage increase in sales from retail stores that have been open for more than 12 months, adjusted for closures and refurbishments and includes all digital revenue.
Comparable sales grew 3% in FY 2017/18 led by mid single-digit growth in Asia Pacific; EMEIA was broadly stable in the year while the Americas grew at low single digits.
Measure
KPI Performance
Adjusted operating profit growth
This measure tracks our ongoing operating profitability and reflects the combination of revenue growth and cost management.

Adjusted operating profit in FY 2017/18 was up 5%* benefiting from retail growth, £44m incremental cost savings and improved Beauty profitability.  
Measure
KPI Performance
Adjusted operating profit margin
This measures how we drive operational leverage and disciplined cost control, with thoughtful investment for future growth, building the long-term value of the brand.


Adjusted operating profit margin +110bps at constant exchange rates, +50bps at reported rates in  FY 2017/18. 
Measure
KPI Performance
Adjusted PBT growth*
Adjusted PBT growth is a key profitability measure to assess the ongoing performance of the Company.

Adjusted PBT in  FY 2017/18 +5%*. This reflected retail growth, £44m incremental cost savings and improved Beauty profitability. 
Measure
KPI Performance
Adjusted diluted EPS growth
Growth in EPS reflects the increase in profitability of the business, improvement in the tax rate and share repurchase accretion

Adjusted diluted EPS grew 6% to 82.1p in  FY 2017/18 reflecting profit growth, a 70bps effective tax rate reduction and a benefit from share repurchases. 
Measure
KPI Performance
Adjusted retail/wholesale return on invested capital (‘ROIC’)
Adjusted retail/wholesale ROIC measures the efficient use of capital on investments. It is calculated as the post-tax adjusted retail/wholesale operating profit divided by average operating assets over the period.

Adjusted retail/ wholesale ROIC 16.3%, +90bps, resulting from adjusted retail/ wholesale operating profit growth and lower retail/wholesale operating assets. 
Measure

Non-financial measures

We have developed non-financial measures to assess our performance against our ongoing people objectives and 2022 responsibility targets. Progress is regularly monitored by our Board through the Inspired People pillar of our strategy. For further details on our responsibility activities and progress against 2022 targets, see pages 44 to 47. The Group has considered the new non-financial reporting requirements under sections 414CA and 414CB of the Companies Act 2006 and has included relevant details in the Annual Report.

Adjusting items are those items which, in the opinion of the directors, should be excluded in order to provide a consistent and comparable view of the underlying performance of the Group’s on-going business. Generally this will include those items that are largely one-off and material in nature as well as income or expenses relating to acquisitions or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future payments or receipts relating to these transactions.

Year to 31 March
Revenue by channel
2014
£m
2015
£m
2016
£m
2017
£m
2018
£m
Retail
Wholesale
1,622.6
628.0
1,807.4
648.1
1,837.7
634.6
2,127.2
613.9
2,176.3
526.4
Retail/Wholesale
Licensing
2,250.6
79.2
2,455.5
67.7
2,472.3
42.4
2,741.1
24.9
2,702.7
30.1
Total revenue 2,329.8 2,523.2 2,514.7  2,766.0 2,732.8

  

Profit by channel £m £m £m £m £m
Retail/Wholesale 393.5 399.2 380.9 437.0 440.7
Licensing 66.8 56.0 36.9 21.7 25.9
Adjusted operating profit1 460.3 455.2 417.8 458.7 466.6

  

Segmental analysis 2014
%
2015
%
2016
%
2017
%
2018
%
Retail/Wholesale gross margin 70.2 69.2 69.6 69.6 69.1 
Retail/Wholesale adjusted operating
expenses as a percentage of sales1
52.7 52.9 54.2 53.7 52.8
Retail/Wholesale adjusted operating margin1 17.5 16.3 15.4 15.9 16.3
Licensing operating margin 84.3 82.7 87.0 87.1 86.0

  

Summary profit analysis £m £m £m £m £m
Adjusted operating profit1   460.3 455.2 417.8 458.7 466.6 
Net finance (charge)/income1 0.7 0.6 2.8 3.7 4.3 
Adjusted profit before taxation1 461.0  455.8 420.6 462.4 470.9 
Adjusting items (16.6) (11.2) (5.0) (67.6) (58.3) 
Profit before taxation 444.4 444.6 415.6 394.8 412.6 
Taxation (112.1) (103.5) (101.0) (107.1) (119.0)
Non-controlling interest (9.8) (4.8) (5.1) (0.9) (0.1) 
Attributable profit 322.5 336.3 309.5 286.8  293.5

  

Retail/Wholesale revenue by product division £m £m £m £m £m
Accessories 816.1 892.5 901.7 1,033.2 1,046.5 
Women's 684.0 743.0 729.0 791.9
808.4 
Men's 520.8 557.5 548.4 623.5 647.3
Children's/Other 78.4  77.7 90.7 108.1 116.8 
Beauty 151.3  184.8  202.5  184.4  83.7


 

Retail/Wholesale revenue by destination £m £m £m £m £m
Asia Pacific 870.3 938.1 932.9 1,069.0 1,089.0 
EMEIA2 811.5 869.0 878.5 991.2  975.2
Americas 568.8 648.4  660.9  680.9  638.5 


 

Financial KPIs 2014 2015 2016 2017 2018
Total revenue growth3 +17% +11% -1% -2% -1% 
Adjusted operating profit growth1 +8%  +7%  -11%  -21%  +5% 
Adjusted PBT margin1,3 +8%  +7%  -10%  -21%  +5% 
Adjusted retail/wholesale return on invested capital (ROIC)1 19.6%  17.9% 14.7%  15.4% 

16.3%

Comparable store sales growth +12% +9% -1% +1% +3%
Adjusted operating profit margin1
19.8%  18.0%  16.6%  16.6%  17.1% 
Adjusted diluted EPS growth1 +8% +2% -9%

+11%

+6% 

1. Excludes the impact of adjusting items. Refer to note 2 for the Group’s policy on adjusting items.

2. EMEIA comprises Europe, Middle East, India and Africa.

3. Growth rate is year-on-year underlying change, i.e. at constant exchange rates. 

Year to 31 March
Earnings and dividends
2014
pence
per share
2015
pence
per share
2016
pence
per share
2017
pence
per share
2018
pence
per share
Adjusted earnings per share - diluted1 75.4 76.9 69.9 77.4 82.1 
Earnings per share - diluted 72.1 75.1 69.4 64.9  68.4
Diluted weighted average number of ordinary shares (millions) 447.3 447.8 446.1 442.2 429.4
Dividend per share (on a paid basis) 29.8 32.9 35.7 37.3 39.4 

  

Year to 31 March
Net Cash Flow
2014
£m
2015
£m
2016
£m
2017
£m
2018
£m
Adjusted operating profit1
460.3  455.2  417.8  458.7 466.6
Restructuring spend (0.7)  - - (16.7)

(24.3)
Depreciation and amortisation 123.7 123.7 132.2 144.0 124.0 
Employee share scheme costs 25.4 21.0 (0.3) 13.1 17.1 
Proceeds/(payment) on equity swap contracts 15.7 (0.2) (1.6) - 0.5 
(Increase)/decrease in inventories (68.2) (15.1) (49.3) 8.4 37.2 
(Increase)/decrease in receivables (73.8) (43.8) (31.7) 19.7 68.1
Increase in payables and provisions1,2 42.3 19.7 9.1 27.6 3.6 
Other non-cash items
10.8 7.6 26.8 33.8  9.7 
Cash flow from operations 535.5 568.1  503.0  688.6 702.5
Net interest 0.8  1.2 3.1 3.7 5.6
Tax paid (111.1) (114.4) (94.8) (131.6) (118.4) 
Net cash flow from operations 425.2 454.9  411.3  560.7 589.7
Capital expenditure (154.0)  (155.7) (138.0) (104.1) (106.0)
Proceeds from disposal of non-current assets 3.0 1.3 0.5 8.5 -
Free cash flow 274.2 300.5 273.8 465.1 483.7
Proceeds on disposal of Beauty operations and related licence2 - - - - 149.8
Capital contributions from JV partners 0.7 0.4 - - -
Acquisitions (2.6) (3.4) - (68.8) (3.0)
Dividends (130.7) (145.3) (158.4) (164.5) (169.4)
Purchase of shares through share buy-back - - - (97.2) (355.0)
Other (21.8) (16.4) (8.7) (11.7) (8.7)
Exchange difference (13.9) 13.9 1.4 26.0 (14.5)
Total movement in net cash 105.9 149.7 108.1 148.9 82.9
Net cash       402.5 552.2
660.3
809.2 892.1

1.  Excludes the impact of adjusting items. Refer to note 2 for the Group’s policy on adjusting items.

2. £100m of advanced payments and related costs of £11.3m settled in the year ended 31 March 2018 are presented in proceeds on disposal of Beauty operations and related licence.

  

As at 31 March
Balance Sheet
2014
£m
2015
£m
2016
£m
2017
£m
2018
£m
Intangible assets 195.4 193.5 189.6 170.1 180.1 
Property, plant and equipment 398.4 436.5 426.2 399.6 313.6 
Inventories 419.8 436.6 486.7 505.3  411.8
Trade and other receivables 273.7 320.8 351.9 352.0 275.5 
Trade and other payables (507.2) (523.1) (501.9) (561.0) (629.0) 
Taxation (including deferred taxation) 47.4 68.6 56.4 83.7 85.1
Net cash
402.5  552.2  660.3  809.2  892.1 
Other net assets (22.0)  (33.6)  (48.3)  (61.1) (103.8)
Net assets 1,208.0 1,451.5 1,620.9 1,697.8  1,425.4 

  

Reconciliation of adjusted Retail/Wholesale ROIC 2014
£m
2015
£m
2016
£m
2017
£m
2018
£m
Retail/Wholesale adjusted operating profit1
Adjusted effective tax rate1
393.5
24.7%
399.2
23.4%
380.9
24.7%
437.0
25.8%
440.7
25.1% 
Retail/Wholesale adjusted operating profit after tax1 296.3 305.8 286.7 324.3 330.1 
Net assets excluding licensing segment assets 1,202.2 1,448.9 1,617.4 1,694.2 1,512.6
Net cash
(402.5)  (552.2) (660.3) (809.2) (892.1) 
Assumed lease assets 2 782.5  922.0 
1,101.0  1,197.0 1,219.0 
Exclude adjusting items:
  Licence intangible asset
  Put option liability
  Deferred consideration
  Restructuring liabilities

(56.0)
51.3
-
1.5

(41.1)
54.4
-
0.8

(26.1)
45.8
-
-

-
-
34.7
11.3

-
-
29.2
51.8
Adjusted operating assets
Average operating assets
1,579.0
1,515.0
1,832.8
1,705.9
2,077.8
1,955.3
2,128.0
2,102.2 
1,920.5
2,024.3
Adjusted Retail/Wholesale ROIC 19.6% 17.9% 14.7% 15.4%
16.3% 

1. Excludes the impact of adjusting items. Refer to note 2 for the Group’s policy on adjusting items.
2. Assumed operating lease assets and assumed operating lease debt are calculated as a factor of five times minimum operating lease payments, excluding the impact of charges and subsequent utilisations relating to onerous lease provisions, and amounts classified as adjusting items. Net charges for onerous lease provisions within adjusted profit before tax during the year ended 31 March 2018 were £7.2m (2017: £7.9m), and £4.8m of existing onerous lease provisions were utilised (2017: £8.3m).