Adjusted operating profit for the 26-week period showed a substantial decline, shifting from £223 million in the prior year to a loss of £41 million (~$52.07 million), representing a decrease of 119 per cent year-over-year (YoY) at reported FX and 117 per cent at CER, said Burberry in a media release.
Burberry Group Plc has reported a revenue of £1,086 million (~$1,380 million) for the 26 weeks ended September 28, 2024, a 22 per cent YoY drop.
Adjusted operating profit declined to a £41 million (~$52.07 million) loss.
Retail sales fell 20 per cent, with notable declines in Asia Pacific and the Americas.
Comparable store sales in EMEIA declined by 13 per cent, and in Americas by 21 per cent.
The adjusted operating profit margin fell sharply to -3.8 per cent from 15.9 per cent, a year-on-year (YoY) drop of 1,970 basis points. Adjusted diluted earnings per share (EPS) also plummeted by 143 per cent at reported FX, reaching -18.3 pence compared to 42.1 pence in the same period of the previous year.
Reported operating profit of the company also dropped significantly, with a loss of £53 million in contrast to a profit of £223 million in the prior year, resulting in a reported operating profit margin decline from 15.9 per cent YoY to -4.9 per cent YoY, a drop of 2,080 basis points. Reported diluted EPS followed this trend, reaching -20.8 pence, a decrease of 149 per cent year-over-year.
Retail comparable store sales declined by 20 per cent YoY in the 26 weeks period, and wholesale sales were down by 29 per cent YoY at CER, and -30 per cent reported.
Regionally, comparable store sales declined across all major markets. In the first quarter (Q1) ended September 28, 2024, sales were down by 21 per cent for the Group, with Asia Pacific; Europe, the Middle East, Africa, and India (EMEIA); and Americas seeing declines of 23 per cent, 16 per cent, and 23 per cent year-over-year (YoY), respectively. In second quarter (Q2) of 2024, the Group’s overall sales decreased by 20 per cent, with Asia Pacific down by 28 per cent, EMEIA by 10 per cent, and the Americas by 18 per cent. For H1, the Group recorded a 20 per cent decline in comparable store sales, with Asia Pacific down by 25 per cent, EMEIA by 13 per cent, and the Americas by 21 per cent.
“Our recent underperformance has stemmed from several factors, including inconsistent brand execution and a lack of focus on our core outerwear category and our core customer segments. Today, we are acting with urgency to course correct, stabilise the business and position Burberry for a return to sustainable, profitable growth. We have a powerful brand with broad appeal among luxury customers, authority in the outerwear and scarf categories which have remained resilient through this period, and a strong presence in all key luxury markets. Now, we have a clear framework to reignite brand desire, improve our performance and drive long-term value creation. Building on our strong foundations, I am confident that Burberry’s best days are ahead,” Joshua Schulman, chief executive officer of Burberry.
“Today, Burberry announces ‘Burberry Forward’, a strategic plan to reignite brand desire, improve our performance and drive long-term value creation. Our focus in this next phase is on reconnecting our brand with its original purpose and leveraging our strengths with a disciplined approach and a range of products to attract a broad base of luxury customers,” Schulman added.
Fibre2Fashion News Desk (SG)
