Interim results for 26 weeks ended 28 September 2019
Strategy delivering results
“We are pleased with our performance in the half, as we remain on track to deliver the first phase of our strategy. New product now represents a high proportion of our assortment and the customer response has been positive delivering strong double digit growth. We also continued to strengthen momentum around our brand and transform our distribution. We delivered financial results in line with guidance despite the decline in Hong Kong and we confirm our outlook for FY 2020."
Marco Gobbetti, Chief Executive Officer
- Riccardo Tisci’s collections delivered strong double digit growth with new product now around 70% of our mainline retail store offer
- Strengthened our brand with positive momentum across social media, press and influencers
- Transformation of distribution well underway with wholesale rationalisation and refreshed retail stores in all major cities
- Launched exclusive, innovative partnership with Tencent to develop social retail in China
In the current period, we have adopted new accounting standard IFRS 16, recognising operating leases as right of use assets and lease liabilities on the balance sheet. The impact of which is set out on page 20. Throughout this review, to aid comparability, a pro forma H1 2020 (see detail on page 37) has been included to be comparable with H1 2019 results.
|Period ended||28 Sept 2019||29 Sept 2018||% change reported FX||28 Sept 2019 pro forma*||% change pro forma vs Sept 2018 reported FX||CER*|
|Retaiil comparable store sales*||4%||3%||4%|
|Adjusted operating profiit*||203||178||14||187||5||(4)|
|Adjusted operating profit margin||15.9%||14.6%||14.6%|
|Reported operating profit||202||173||17||186||8|
|Adjusted Diluted EPS (pence)*||36.9||32.9||12||36.1||10||1|
|Diluted EPS (pence)||36.4||31.6||15||35.7||13|
|Free cash flow*||(29)||46||(29)|
Outlook FY 2020
- Guidance maintained for broadly stable top-line and adjusted operating margin, despite incremental pressure on gross margin from the disruptions in Hong Kong and mix~
*See page 12 for definitions of alternative performance measures.
~At CER and excluding the impact of the adoption of IFRS 16. See detailed guidance in Appendix.