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11 Nov 2021

Burberry Group plc

Interim results for 26 weeks ended 25 September 2021

Strong start to growth and acceleration phase

"We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation. We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals. I would like to thank Marco Gobbetti for his vision and leadership of Burberry’s transformation. We are very excited that Jonathan Akeroyd is joining as our new CEO in April to build on the strong foundations to accelerate growth and deliver further value for our shareholders.”
Gerry Murphy, Chair

  • H1 FY22 revenues back at pre COVID-19 levels (CER) with adjusted operating profit ahead vs LLY*
    • Within comparable store sales growth of 1% vs LLY*, full-price gained 18%
    • Full-price performance driving gross margin and adjusted operating margin increases vs LLY*
  • Americas, Mainland China and South Korea delivered strong double-digit growth vs LLY* while other regions were under pressure from reduced tourist levels
  • Core product categories: leather saw double-digit growth in full-price comparable sales vs LLY with outerwear strengthening in the period
  • New store concept driving higher-spending customer recruitment. We now have 15 stores in the new format with around 50 new concept stores planned globally by end FY22
  • Digital performing well with full-price sales almost doubling vs LLY*
  • Set industry-leading commitments around climate including pledge to be Climate Positive by 2040 and support global conservation efforts
  • Strong cash generation with cash conversion over 100%. Interim dividend reinstated at 11.6p, 3% ahead of FY20 levels and recommenced the share buyback with £150m planned

Period end 

£ million

25 Sept


26 Sept


% change 

Reported FX

% change 


Revenue  1,213 878 +38% +45%
Retail comparable store sales vs LY** +37% (25%)    
Retail full-price comparable store sales vs LLY** +18%      
Adjusted operating profit** 196 51 3.8x 4.2x
Adjusted operating profit margin** 16.2% 5.8%    
Adjusted diluted EPS (pence)** 33.5 4.6 7.3x 8.1x
Reported*** operating profit 207 88 2.4x  
Reported operating profit margin 17.1% 10.0%    
Reported diluted EPS (pence) 35.7p 12.2p 2.9x  
Free cash flow** 104 (45)    
Dividend (pence) 11.6p 0.0    

*LLY is compared with equivalent period in FY20 results at CER
** See page 17 for definitions of alternative performance measures
*** Reported refers to statutory measures directly from the financial statements


Maintaining our medium-term guidance for high single-digit top line growth and meaningful margin accretion* and confirm that we are comfortable with current year market expectations.

*Guidance is quoted at constant exchange rates (CER) with the base year in FY20


Business and financial review 

FY22 marks the first year of the growth and acceleration phase of our strategy. In this chapter, our focus is on leveraging our unique brand equity to deliver sustainable, high-quality growth, while continuing our efforts to do well by doing right.

Despite a continuing challenging external environment, in H1 FY22 we drove a material enhancement in the quality of our revenue streams. Our strategy to exit mainline and digital markdowns and the deliberate tight management of our outlet business resulted in a significant shift towards full-price sales. Within comparable store sales growth of 1% vs LLY, full-price sales advanced 18%, growing a double-digit percentage across Q1 and Q2. Regionally, full-price sales almost doubled in the Americas, South Korea grew almost 80%, and Mainland China was up over 40% even as wide-reaching regional lockdowns and extreme weather impacted our performance in August in particular.

The improved quality of our revenue streams has enhanced our financial metrics, underpinning exceptional free cash conversion of over 100% in the half and an improvement in gross margin of 130bp at CER despite significant pressures from Brexit duties and channel mix. We also saw an 11.2% point increase in the adjusted operating margin CER vs LY and a 120bps increase against LLY.

Growth has been supported by strong, localised marketing campaigns, particularly in markets less impacted by travel restrictions. In the Americas, we launched a dedicated product capsule designed by Peter Saville and hosted events like the takeover of Miami’s Goodtime Hotel to support our Summer Monogram capsule. In South Korea, building on our efforts to strengthen the brand over the last years, we signed a new brand ambassador, singer and actor Cha Eun-woo, and introduced exciting customer activations such as the immersive outerwear experience that went live on Jeju Island today. In Mainland China, we drove engagement and performance through a culturally relevant programme of activities, including a dedicated capsule collection and campaign for Chinese Valentine’s Day, and a series of unexpected partnerships with local Chinese artists for our summer monogram collection.

Our programme of brand activities has continued to generate strong reach and engagement globally and we have found new ways to excite our customers. We partnered with multiplayer game ‘Blankos Block Party’ to create our first in‐game NFT and released a limited‐edition Burberry ‘Blanko’ named Sharky B, plus a range of accessories inspired by the Monogram capsule; all 750 units of the NFT sold out within 30 seconds. For the launch of our Summer Monogram capsule in July, we excited consumers with several unexpected experiences, including an interactive augmented reality brand filter on TikTok which generated 3.7bn views – an industry and platform first.

In product, we made further progress in our core categories; leather goods and outerwear. In leather, we continued to build performance by strengthening our Women’s handbags pillars, delivering a programme of 70+ pop-ups for Olympia and expanding the Lola family, as well as introducing our new shape, the Rhombi, as part of our SS22 Runway collection. As a result, in H1 FY22, leather delivered double-digit full-price sales growth vs LLY. In outerwear, we have launched a dedicated campaign including a brand film, strong storytelling on key social media platforms, including a Tik Tok takeover, as well as activations across physical and digital channels. We have innovated and elevated our DK fabric, developing a new lightweight Gabardine, and applied it to more casual styles to create a DK down, with details such as special quilting techniques, cashmere linings and leather details.

At the same time, we continued to elevate the customer experience. Our new store concept roll out is progressing well, with 15 stores completed so far, and a total of around 50 new concept stores planned globally by year end FY22. These stores are resonating very well with our customers, attracting high-spending clientele. We strengthened the integration between our offline and online channels by launching regional pilots to enhance content sharing tools for our sales associates. We enhanced product discovery on our website by launching an ‘Outerwear Hub’ as part of our outerwear campaign – a section of the Burberry.com website dedicated to the collection. As a result, we have seen good traction with full-price performance on our digital channels, almost doubling our sales in H1 vs LLY and DD growth vs LY.

Guided by our purpose and values, we continued to drive positive change for our environment, our people and our communities. We remain on track to become carbon neutral and source 100% renewable electricity across our own operations by the end of FY22. In June, we pledged to become Climate Positive by 2040, setting a new industry standard that goes beyond net zero. At COP 26 in Glasgow this month, we announced our biodiversity strategy to protect, restore and regenerate nature. This includes a significant five-year investment in the LEAF Coalition, the largest ever public-private initiative to finance the protection of tropical forests, and a partnership with The Savory Institute to help regenerate the world’s grasslands and the livelihoods of their inhabitants.

We continued to make strong progress against our D&I ambition, widening the scope of our internal council, expanding company-wide training and implementing focused action plans for every function and region. As part of this, we hosted events and workshops with partners, and provided resources for all colleagues to drive allyship while celebrating key moments including Pride, Black History Month and LGBT+ History Month. We also expanded our strategic partnerships and are proud to be the lead sponsor of the inaugural British Diversity Awards in March 2022. Meanwhile, our Cultural Advisory Council of external leaders continues to help us shape our strategy as all founding members renew their involvement for a second term.

We also extended our support for our communities, expanding our education programmes globally. and made a further donation to the UNICEF COVID-19 Vaccines Appeal via the Burberry Foundation, enabling more equitable distribution of the vaccine around the world.

For the full announcement please click here