Interim results for 26 weeks ended 29 September 2018
8 November 2018
Brand repositioning underway, with strong initial response
“We are energised by the early results as we begin to transform and reposition Burberry. The initial response from influencers, press, buyers and customers to our new creative vision and Riccardo’s debut collection Kingdom has been exceptional. Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition. We confirm our outlook for the full year.”
Marco Gobbetti, Chief Executive Officer
|£ million||29 Sept||30 Sept||% change|
|Period ended||2018||2017||Reported FX||CER*|
|Revenue ex. Beauty wholesale*||1,220||1,186||3||4|
|Retail comparable store sales*||3%||4%|
|Adjusted operating profit*||178||185||(4)||8|
|Adjusted operating profit margin||14.6%||14.6%|
|Reported operating profit||173||127||36|
|Adjusted Diluted EPS (pence)||32.6||32.3||2||14|
|Diluted EPS (pence)||31.6||21.4||48|
|Free cash flow*||46||171|
*See page 11 for definitions of alternative performance measures
- Exceptional response to new creative vision, including rebranding and Riccardo’s debut collection
- Successful launch of new go-to-market model, with social selling innovation contributing to building brand heat
- Consumer perception shifting; significant increase in engagement on Instagram and WeChat. Organic endorsement from some of the world’s most followed influencers
- Strong wholesale response to new product; distribution headwind through to FY 2020, as guided, with majority of negotiations now completed
- Managing business dynamically in period of transition to deliver financial objectives and protect the brand
- Maintaining FY 2019 guidance including delivery of cumulative cost savings of £100m
All metrics and commentary in the Interim Review exclude adjusting items unless stated otherwise.
# Constant exchange rates (CER) removes the effect of changes in exchange rates compared to the prior period. This takes into account both the impact of the movement in exchange rates on the translation of overseas subsidiaries’ results and also on foreign currency procurement and sales through the Group's UK supply chain.
With effect from 1 April 2018, Burberry is preparing its full year consolidated financial statements to a Saturday within seven days of the 31 March. The 26-week period ended 29 September 2018 has one fewer day than the prior year comparative period ended 30 September 2017. For more detail please see page 9.
The following alternative performance measures are presented in this announcement: adjusted performance measures, comparable sales, revenue excluding Beauty wholesale and free cash flow. The definitions of these alternative performance measures are set out in the Appendix on page 11.
Cumulative cost savings are savings compared to FY 2016 operating expenses.
Certain financial data within this announcement have been rounded.
|Investors and analysts|
|Charlotte Cowley||VP, Investor Relationsfirstname.lastname@example.org||020 3367 3234|
|Andrew Roberts||VP, Corporate Relationsemail@example.com||020 3367 3764|
- There will be a presentation today at 9.30am (UK time) for investors and analysts at Horseferry House, Horseferry Road, London, SW1P 2AW
- The presentation can be viewed live on the Burberry website www.burberryplc.com and can also be accessed live via a listen only dial-in facility on +44 (0)20 3003 2666
- The supporting slides and an indexed replay will be available on the website later in the day
- Burberry will update on third quarter trading on 23 January 2019
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. Burberry Group plc undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. Nothing in this announcement should be construed as a profit forecast. All persons, wherever located, should consult any additional disclosures that Burberry Group plc may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.
Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index. ADR symbol OTC:BURBY.
The full press release can be found here.