Burberry Group Plc (LON:BRBY) has announced its 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
| Period ended£ million | 52 weeks ended29 March 2025 | 52 weeks ended30 March 2024 | YoY % changeReported FX | YoY % changeCER |
| Revenue | 2,461 | 2,968 | (17) | (15) |
| Retail comparable store sales* | (12%) | (1%) | ||
| Adjusted operating profit* | 26 | 418 | (94) | (88) |
| Adjusted operating margin* | 1.0% | 14.1% | (1300bps) | (1210bps) |
| Adjusted diluted EPS (pence)* | (14.8) | 73.9 | (120) | (107) |
| Reported operating (loss)/profit | (3) | 418 | (101) | |
| Reported operating margin | (0.1%) | 14.1% | (1420bps) | |
| Reported diluted EPS (pence) | (20.9) | 73.9 | (128) | |
| Free cash flow* | 65 | 63 | 5 | |
| Proposed dividend (pence) | – | 61.0 | n/a |
*See page 11 for definitions of alternative performance measures
Comparable store sales by region*
| vs LY | Group | Asia Pacific* | EMEIA | Americas |
| Q4 | (6%) | (9%) | (4%) | (4%) |
| FY25 | (12%) | (16%) | (8%) | (9%) |
*See page 5 for further detail including split of Asia Pacific
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).
FY26 OUTLOOK
We are still in the early stages of our turnaround. The current macroeconomic environment has become more uncertain in light of geopolitical developments.
Our focus in the year ahead will be to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the topline. We will deliver margin improvement with a continued focus on simplification, productivity and cash flow. We expect to see the impact of our actions build as the year progresses.
We are confident that we are positioning the business for a return to sustainable, profitable growth.
All metrics and commentary in the Group Financial Highlights and Business and Financial Review exclude adjusting items unless stated otherwise.
The following alternative performance measures are presented in this announcement: CER, adjusted (loss)/profit measures, comparable sales, free cash flow, cash conversion, adjusted EBITDA and net debt. The definitions of these alternative performance measures are on page 11.
Certain financial data within this announcement have been rounded. Growth rates and ratios are calculated on unrounded numbers.
The financial information for the 52 weeks ended 29 March 2025 and 30 March 2024 contained in this document does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the 52 weeks ended 29 March 2025 and 30 March 2024 has been extracted from the consolidated financial statements of Burberry Group plc for the 52 weeks ending 29 March 2025 which have been approved by the directors on 13 May 2025 and will be delivered to the Registrar of Companies in due course. The auditor’s report on those financial statements was unqualified and did not contain a statement under section 498 of the Companies Act 2006.
This announcement contains information that qualified or may have qualified as inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”). The person responsible for arranging the release of this announcement on behalf of Burberry Group plc is Gemma Parsons, Company Secretary.
· There will be a presentation today at 9.30am (UK time) for investors and analysts at Horseferry House, Horseferry Road, London, SW1P 2AW
· The presentation can also be viewed live on the Burberry website https://www.burberryplc.com/, you can click here to register
· The supporting slides will be available on the website prior to the presentation and an indexed replay will be available later in the day
· Burberry will issue its First Quarter Trading Update on 18 July 2025
· The AGM will be held on 16 July 2025
