Preliminary Results for 52 weeks ended 29 March 2025

“After a challenging first half, we have moved at pace to implement Burberry Forward, our strategic plan to reignite brand desire, improve our performance and drive long-term value creation. Our customers are responding to our Timeless British Luxury brand expression. With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store. The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity. While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry’s best days are ahead and that we will deliver sustainable profitable growth over time.”

Joshua Schulman, Chief Executive Officer

Comparable store sales by region

FY25 Financial Performance

• Revenue -15% at CER, -17% reported rates
• Retail comparable sales -12%; -5% in H2 vs -20% in H1
• Adjusted operating profit £26m; H2 £67m profit offsetting H1 £41m loss
• Reported operating loss £3m after £29m adjusting items charge
• Gross margin 62.5%, -470bps at CER and -520bps reported rates
• Adjusted net operating expenses -3% CER, -5% reported
• Free cash inflow of £65m

Strategic Progress

After a challenging first half, in November we launched Burberry Forward. Our immediate intervention to reset the brand storytelling, enhance visual merchandising in stores and online, and align product focus to our core categories has resulted in a significant improvement in our comparable retail sales in the second half relative to the first half. This gives us confidence that our strategic plan is the right path forward.

In H2, we took the following actions:

• Reset brand expression to Timeless British Luxury with 360-degree “It’s Always Burberry Weather” outerwear and “Wrapped in Burberry” festive and Lunar New Year campaigns
• Presented Winter 25 runway show at Tate Britain which celebrated our iconic brand codes and our hero categories, resulting in a significant improvement in brand sentiment and engagement
• Initiated rebalancing of product offer with fewer, bigger ideas; aligned pricing with category authority in a luxury context
• Enhanced visual merchandising in stores with more mannequins and improved product densities; launched scarf bar pilot
• Updated styling online and introduced new digital innovations to broaden appeal, delivering a step change in performance
• Strengthened alignment between commercial and creative teams and evolved operating model to drive simplification, increase agility and improve productivity
• Accelerated actions to address inventory overhang and restore scarcity with gross inventory of -7% CER at March-25 ahead of guidance
• Initiated cost savings programme with £24m delivered in FY25

Organising for Growth

At the heart of Burberry Forward is our commitment to restoring a culture of creative and commercial alchemy rigorously focused on our customer. Our plan is underpinned by a step change in productivity, simplification, and financial discipline. Today, we are announcing organisational changes aimed at enhancing collaboration across our business, increasing our agility, driving efficiency and profitability while protecting our investment in consumer-facing areas. Reimagining Burberry in this way will ensure that the organisation is fit for the future in a demanding and dynamic global market.

We expect the proposed changes to unlock an additional £60m of savings by FY27, enabling us to continue to fund our biggest growth opportunities. This is incremental to our previously announced £40m cost- savings programme, bringing the combined annualised savings to £100m by FY27. We expect these proposed incremental savings to come from operating expenses, with increased efficiency of spend in procurement and real estate, and a reduction in people-related costs which could impact around 1,700 roles globally over the life of the programme, subject to consultation where applicable.

The associated one-off costs across both programmes, which are largely cash, are expected to total around £80m (£29m exceptional cost in FY25 with the balance in FY26).

Enquiries

For the full announcement click here.