Preliminary results for the year ended 31 March 2018
Execution of plan on track with comparable sales +3% and growth in profit and cash flow
In November 2017, we set out our multi-year plan to re-energise our product, our communication and the experiences customers have of our brand to deliver sustainable long-term value. We have made good initial progress, our plans are on track and we are seeing positive early signs from our retail and wholesale customers.
|£ million||% change|
|Twelve months to 31 March||2018||2017||reported FX||CER#|
|Revenue ex. Beauty wholesale*||2,660||2,595||2||2|
|Retail comparable store sales*||3%||1%|
|Adjusted operating profit*||467||459||2||5|
|Ajdusted operating profit margin||17.1%||16.6%|
|Reported operating profit||410||394||4|
|Ajusted Diluted EPS (pence)*||82.1||77.4||6||10|
|Diluted EPS (pence)||68.4||64.9||5|
|Free cash flow||484||465||4|
- Riccardo Tisci appointed as Chief Creative Officer from March 2018
- Strategic acquisition to create centre of excellence for luxury leather goods
- Collections resonated with new customers and top-tier clients
- Retail excellence programme supported increased conversion in all regions
- Started evolution of distribution including strategic retail store closures as planned
- Launched collaboration with Farfetch, expanded reach to over 150 countries
- Cumulative cost savings of £64m, ahead of plan; Burberry Business Services live
- Successfully completed transfer of Beauty to Coty strategic partnership as planned
FY 2019 outlook
- Trading in line with guidance
- On track to deliver cumulative cost savings of £100m
- New share buyback of £150m announced
“In a year of transition, we are pleased with our performance as we began to execute our strategy. While the task of transforming Burberry is still before us, the first steps we implemented to re-energise our brand are showing promising early signs. With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value.”
Marco Gobbetti, Chief Executive Officer
All metrics and commentary in the Group Financial Highlights and Business and Financial 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.
The following alternative performance measures are presented in this announcement: adjusted performance measures, comparable sales, revenue excluding Beauty wholesale, free cash flow, cash conversion and lease-adjusted net debt. The definition of these alternative performance measures are set out in the Appendix on page 12.
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) to 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 issue its First Quarter Trading Update on 11 July 2018
- The AGM will be held on 12 July 2018
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.
BURBERRY, the Equestrian Knight Device and the Burberry Check are trademarks belonging to Burberry which are registered and enforced worldwide.