KEY PERFORMANCE INDICATORS
Key Performance Indicators (KPIs) help management measure progress against our six strategic pillars and responsibility targets.
REVENUE GROWTH*
This measures the appeal of the Burberry brand for customers, through all our sales channels.
Financial ambition
High single-digit top‑line growth.*
Performance
FY 2018/19 revenue declined 1%.Total retail sales was flat at CER. Wholesale growth excluding Beauty was up 7% at CER. This was offset by the loss of Beauty wholesale revenue following the beauty license with Coty. Excluding Beauty wholesale, revenue growth was 2%.
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. It is adjusted for closures and refurbishments, and includes all digital revenue.
Financial ambition
High single-digit top‑line growth.*
Performance
Comparable sales grew 2% in FY 2018/19, with low single-digit growth across all three regions.
ADJUSTED OPERATING PROFIT GROWTH*
This measure tracks our ongoing operating profitability and reflects the combination of revenue growth and cost management.
Financial ambition
Adjusted operating profit growth ahead of revenue growth.*
Performance
Adjusted operating profit in FY 2018/19 was flat year on year with gross margin and operating margin stable at CER. Incremental cost savings of £41 million, offset inflationary cost pressures and strategic investments.
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.
Financial ambition
Meaningful operating margin expansion.*
Performance
Adjusted operating profit margin +10bps, at CER, -100bps rates at reported rates in FY 2018/19 due to the impact of exchange rates.
ADJUSTED PROFIT BEFORE TAX (PBT) GROWTH*
Adjusted PBT growth is a key profitability measure to assess the ongoing performance of the Company.
Financial ambition
Adjusted PBT growth ahead of revenue growth.*
Performance
Adjusted PBT in FY 2018/19 was flat year on year with gross margin and operating margin stable at CER. Incremental cost savings of £41 million, offset inflationary cost pressures and strategic investments.
ADJUSTED DILUTED EPS GROWTH
Growth in EPS reflects the increase in profitability of the business, improvement in the tax rate and share repurchase accretion.
Financial ambition
Adjusted EPS growth ahead of revenue growth.*
Performance
Adjusted diluted EPS (EPSA) was flat year on year at 82.1p in FY 2018/19. Before the impact of foreign exchange, EPSA rose 7% due to an effective tax rate reduction of 200bps and the impact of share repurchases.
ADJUSTED RETAIL WHOLESALE 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.
Financial ambition
ROIC significantly ahead of WACC.
Performance
Adjusted retail/wholesale ROIC 15.5%, -80 bps due to the reduction in reported profits as a result of exchange rates.
* At CER
Details of alternative performance measures are shown on page 71 in the Annual Report
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 42 to 55. 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.
| To end of year Revenue by channel |
2015 £m |
2016 £m |
2017 £m |
2018 £m |
2019 £m |
|---|---|---|---|---|---|
| Retail Wholesale |
1,807.4 648.1 |
1,837.7 634.6 |
2,127.2 613.9 |
2,176.3 526.4 |
2,185.8 487.9 |
| Retail/Wholesale Licensing |
2,455.5 67.7 |
2,472.3 42.4 |
2,741.1 24.9 |
2,702.7 30.1 |
2,673.7 46.5 |
| Total revenue | 2,523.2 | 2,514.7 | 2,766.0 | 2,732.8 | 2,720.2 |
| Profit by channel | £m | £m | £m | £m | £m |
|---|---|---|---|---|---|
| Retail/Wholesale | 399.2 | 380.9 | 437.0 | 440.7 | 395.7 |
| Licensing | 56.0 | 36.9 | 21.7 | 25.9 | 42.4 |
| Adjusted operating profit1 | 455.2 | 417.8 | 458.7 | 466.6 | 438.1 |
| Segmental analysis | 2015 % |
2016 % |
2017 % |
2018 % |
2019 % |
|---|---|---|---|---|---|
| Retail/Wholesale gross margin | 69.2 | 69.6 | 69.6 | 69.1 | 67.9 |
| Retail/Wholesale adjusted operating expenses as a percentage of sales1 |
52.9 | 54.2 | 53.7 | 52.8 | 53.1 |
| Retail/Wholesale adjusted operating margin1 | 16.3 | 15.4 | 15.9 | 16.3 | 14.8 |
| Licensing operating margin | 82.7 | 87.0 | 87.1 | 86.0 | 91.2 |
| Summary profit analysis | £m | £m | £m | £m | £m |
|---|---|---|---|---|---|
| Adjusted operating profit1 | 455.2 | 417.8 | 458.7 | 466.6 | 438.1 |
| Net finance (charge)/income1 | 0.6 | 2.8 | 3.7 | 4.3 | 5.1 |
| Adjusted profit before taxation1 | 455.8 | 420.6 | 462.4 | 470.9 | 443.2 |
| Adjusting items | (11.2) | (5.0) | (67.6) | (58.3) | (2.6) |
| Profit before taxation | 444.6 | 415.6 | 394.8 | 412.6 | 440.6 |
| Taxation | (103.5) | (101.0) | (107.1) | (119.0) | (101.5) |
| Non-controlling interest | (4.8) | (5.1) | (0.9) | (0.1) | 0.2 |
| Attributable profit | 336.3 | 309.5 | 286.8 | 293.5 | 339.3 |
| Retail/Wholesale revenue by product division | £m | £m | £m | £m | £m |
|---|---|---|---|---|---|
| Accessories | 892.5 | 901.7 | 1,033.2 | 1,046.5 | 1,012.7 |
| Women's | 743.0 | 729.0 | 791.9 |
808.4 | 836.8 |
| Men's | 557.5 | 548.4 | 623.5 | 647.3 | 698.2 |
| Children's/Other | 77.7 | 90.7 | 108.1 | 116.8 | 120.0 |
| Beauty | 184.8 | 202.5 | 184.4 | 83.7 | 6.0 |
| Retail/Wholesale revenue by destination | £m | £m | £m | £m | £m |
|---|---|---|---|---|---|
| Asia Pacific | 938.1 | 932.9 | 1,069.0 | 1,089.0 | 1,104.3 |
| EMEIA2 | 869.0 | 878.5 | 991.2 | 975.2 | 957.4 |
| Americas | 648.4 | 660.9 | 680.9 | 638.5 | 612.0 |
| Financial KPIs | 2015 | 2016 | 2017 | 2018 | 2019 |
|---|---|---|---|---|---|
| Total revenue growth3 | +11% | -1% | -2% | -1% | -1% |
| Adjusted operating profit growth1 | +7% | -11% | -21% | +5% | +0% |
| Adjusted PBT margin1,3 | +7% | -10% | -21% | +5% | +0% |
| Adjusted retail/wholesale return on invested capital (ROIC)1 | 17.9% | 14.7% | 15.4% | 16.3% |
15.5% |
| Comparable store sales growth | +9% | -1% | +1% | +3% | +2% |
| Adjusted operating profit margin1 |
18.0% | 16.6% | 16.6% | 17.1% | 16.1% |
| Adjusted diluted EPS growth1 | +2% | -9% | +11% |
+6% | +0% |
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.
| To end of year Earnings and dividends |
2015 pence per share |
2016 pence per share |
2017 pence per share |
2018 pence per share |
2019 pence per share |
|---|---|---|---|---|---|
| Adjusted earnings per share - diluted1 | 76.9 | 69.9 | 77.4 | 82.1 | 82.1 |
| Earnings per share - diluted | 75.1 | 69.4 | 64.9 | 68.4 | 81.7 |
| Diluted weighted average number of ordinary shares (millions) | 447.8 | 446.1 | 442.2 | 429.4 | 415.1 |
| Dividend per share (on a paid basis) | 32.9 | 35.7 | 37.3 | 39.4 | 41.1 |
| To end of year Net Cash Flow |
2015 £m |
2016 £m |
2017 £m |
2018 £m |
2019 £m |
|---|---|---|---|---|---|
| Adjusted operating profit1 |
455.2 | 417.8 | 458.7 | 466.6 | 438.1 |
| Restructuring spend | - | - | (16.7) |
(24.3) | (20.2) |
| Depreciation and amortisation1 | 123.7 | 132.2 | 144.0 | 124.0 | 115.8 |
| Employee share scheme costs | 21.0 | (0.3) | 13.1 | 17.1 | 15.7 |
| Proceeds/(payment) on equity swap contracts | (0.2) | (1.6) | - | 0.5 | 2.5 |
| (Increase)/decrease in inventories | (15.1) | (49.3) | 8.4 | 37.2 | (59.3) |
| (Increase)/decrease in receivables | (43.8) | (31.7) | 19.7 | 68.1 | (54.6) |
| Increase in payables and provisions1 | 19.7 | 9.1 | 27.6 | 3.6 | 66.6 |
| Other non-cash items |
7.6 | 26.8 | 33.8 | 9.7 | 11.3 |
| Cash flow from operations | 568.1 | 503.0 | 688.6 | 702.5 | 515.9 |
| Net interest | 1.2 | 3.1 | 3.7 | 5.6 | 6.3 |
| Tax paid | (114.4) | (94.8) | (131.6) | (118.4) | (110.8) |
| Net cash flow from operations | 454.9 | 411.3 | 560.7 | 589.7 | 411.4 |
| Capital expenditure | (155.7) | (138.0) | (104.1) | (106.0) | (110.6) |
| Proceeds from disposal of non-current assets | 1.3 | 0.5 | 8.5 | - | - |
| Free cash flow | 300.5 | 273.8 | 465.1 | 483.7 | 300.8 |
| Proceeds on disposal of Beauty operations and related licence | - | - | - | 149.8 | 0.6 |
| Capital contributions from JV partners | 0.4 | - | - | - | - |
| Acquisitions | (3.4) | - | (68.8) | (3.0) | (25.6) |
| Dividends | (145.3) | (158.4) | (164.5) | (169.4) | (171.1) |
| Purchase of shares through share buy-back | - | - | (97.2) | (355.0) | (150.7) |
| Other | (16.4) | (8.7) | (11.7) | (8.7) | (10.5) |
| Exchange difference | 13.9 | 1.4 | 26.0 | (14.5) | 1.7 |
| Total movement in net cash | 149.7 | 108.1 | 148.9 | 82.9 | (54.8) |
|---|
| Net cash | 552.2 |
660.3 |
809.2 | 892.1 | 837.3 |
|---|
1. Excludes the impact of adjusting items. Refer to note 2 for the Group’s policy on adjusting items.
| As end of year Balance Sheet |
2015 £m |
2016 £m |
2017 £m |
2018 £m |
2019 £m |
|---|---|---|---|---|---|
| Intangible assets | 193.5 | 189.6 | 170.1 | 180.1 | 221.0 |
| Property, plant and equipment | 436.5 | 426.2 | 399.6 | 313.6 | 306.9 |
| Inventories | 436.6 | 486.7 | 505.3 | 411.8 | 465.1 |
| Trade and other receivables | 320.8 | 351.9 | 352.0 | 275.5 | 321.2 |
| Trade and other payables | (523.1) | (501.9) | (561.0) | (629.0) | (702.2) |
| Taxation (including deferred taxation) | 68.6 | 56.4 | 83.7 | 85.1 | 97.5 |
| Net cash |
552.2 | 660.3 | 809.2 | 892.1 | 837.3 |
| Other net assets | (33.6) | (48.3) | (61.1) | (103.8) | (86.8) |
| Net assets | 1,451.5 | 1,620.9 | 1,697.8 | 1,425.4 | 1460.0 |
| Reconciliation of adjusted Retail/Wholesale ROIC | 2015 £m |
2016 £m |
2017 £m |
2018 £m |
2019 £m |
|---|---|---|---|---|---|
| Retail/Wholesale adjusted operating profit1 Adjusted effective tax rate1 |
399.2 23.4% |
380.9 24.7% |
437.0 25.8% |
440.7 25.1% |
395.7 23.1% |
| Retail/Wholesale adjusted operating profit after tax1 | 305.8 | 286.7 | 324.3 | 330.1 | 304.3 |
| Net assets excluding licensing segment assets | 1,448.9 | 1,617.4 | 1,694.2 | 1,512.6 | 1,540.7 |
| Net cash |
(552.2) | (660.3) | (809.2) | (892.1) | (837.3) |
| Assumed lease assets 2 | 922.0 |
1,101.0 | 1,197.0 | 1,219.0 | 1,245.5 |
| Exclude adjusting items: Licence intangible asset Put option liability Deferred consideration Restructuring liabilities |
(41.1) 54.4 - 0.8 |
(26.1) 45.8 - - |
- - 34.7 11.3 |
- - 29.2 51.8 |
- - 21.9 26.7 |
| Adjusted operating assets Average operating assets |
1,832.8 1,705.9 |
2,077.8 1,955.3 |
2,128.0 2,102.2 |
1,920.5 2,024.3 |
1,997.5 1,959.0 |
| Adjusted Retail/Wholesale ROIC | 17.9% | 14.7% | 15.4% |
16.3% | 15.5% |
1.Excludes the impact of adjusting items. Refer to note 2s 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 52 weeks to 30 March 2019 were £3.6 million (last year: £7.2 million), and £5.3 million of existing onerous lease provisions were utilised (last year: £4.8 million).
Revenue by channel1,2
Growth is presented underlying and is calculated at constant exchange rates
1. All references to revenue growth are presented at CER. All references to revenue and revenue growth are excluding Beauty wholesale.
2. Retail/wholesale revenue.
3. For more detail on performance see page 66 in our Annual Report.
Revenue by region1,2,3
Growth is presented underlying and is calculated at constant exchange rates
1. All references to revenue growth are presented at CER. All references to revenue and revenue growth are excluding Beauty wholesale.
2. Retail/wholesale revenue.
3. For more detail on performance see page 66 in our Annual Report.
Revenue by product1,2,3
Growth is presented underlying and is calculated at constant exchange rates
1. Retail/wholesale revenue
2. All references to revenue growth on this page are presented at constant exchange rates
3. All references to revenue and revenue growth on this page are excluding Beauty wholesale
