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Burberry Group Plc Brand repositioning underway, with strong initial response

Burberry Group Plc (LON:BRBY) today announced Interim results for 26 weeks ended 29 September 2018

“We are energised by the early results as we begin to transform and reposition Burberry. The initial response from influencers, press, buyers and customers to our new creative vision and Riccardo’s debut collection Kingdom has been exceptional. Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition. We confirm our outlook for the full year.”

Marco Gobbetti, Chief Executive Officer of Burberry

£ million

29 Sept

30 Sept

% change

Period ended:

2018

2017

reported FX

CER#

Revenue

1,220

1,263

(3)

(2)

Revenue ex. Beauty wholesale*

1,220

1,186

3

4

      Retail comparable store sales*

3%

4%

Adjusted operating profit*

178

185

(4)

8

Adjusted operating profit margin

14.6%

14.6%

Reported operating profit

173

127

36

Adjusted Diluted EPS (pence)*

32.9

32.3

2

14

Diluted EPS (pence)

31.6

21.4

48

Free cash flow*

46

171

Dividend (pence)

11.0

11.0

0

*See page 11 for definitions of alternative performance measures

· Exceptional response to new creative vision, including rebranding and Riccardo’s debut collection

· Successful launch of new go-to-market model, with social selling innovation contributing to building brand heat

· Consumer perception shifting; significant increase in engagement on Instagram and WeChat. Organic endorsement from some of the world’s most followed influencers

· Strong wholesale response to new product; distribution headwind through to FY 2020, as guided, with majority of negotiations now completed

· Managing business dynamically in period of transition to deliver financial objectives and protect the brand

Outlook

· Maintaining FY 2019 guidance including delivery of cumulative cost savings of £100m