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Investment Case

Our vision is to be the leading British luxury brand, delivering sustainable, high-quality growth and value for our stakeholders and communities.

STRATEGY

Environmental, Social and Governance (ESG)

We are committed to building a financially stronger and better Burberry.

  • We fuel the creativity of our colleagues by championing diversity, equality and inclusion, and by supporting their wellbeing.
  • We empower young people, providing youth from underrepresented communities with the skills, confidence and opportunities to succeed.
  • We are creating a more sustainable future for luxury by further reducing our environmental impacts and helping to transform our industry. 

Read more about our Responsibility strategy and TFCD disclosures.

Our framework for long-term value creation centres around three major pillars: revenue growth, adjusted operating profit margin accretion and capital efficiency.

REVENUE
GROWTH
 

Burberry operates in the luxury goods sector, where industry growth tends to deliver ahead of overall annually global Gross Domestic Product (GDP) growth. Our ambition, in the medium term, is to deliver high single-digit top-line growth (from FY 2019/20 base at constant currency).

We will drive revenue growth through five key levers:

  1. Build brand advocacy and community
  2. Focus on core product categories
  3. Drive store performance
  4. Supercharge digital sales
  5. Focus on full-price sales 

ADJUSTED OPERATING PROFIT MARGINS ACCRETION

Our ambition is to deliver meaningful adjusted operating profit margin improvements in the medium term.

We will drive profit through five key levers:

  1. Full-price penetration
  2. Digital and omnichannel
  3. Gross margin
  4. Sales density
  5. Cost management 

CAPITAL
EFFICIENCY
 

Burberry has a capital allocation framework, which prioritises the use of cash while maintaining an appropriate capital structure for the business. Our uses of cash are summarised below. 

Reinvest

Reinvest for organic growth.

Dividend

Pay a progressive dividend.

Strategic investment

Invest in strategic initiatives.

Capital returned

Return excess cash to shareholders based on target leverage ratio underpinned by maintaining a solid investment grade credit rating.