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Burberry Group plc Strong progress in first year of transformation

Burberry Group plc (LON:BRBY) today announced preliminary results for the 52 weeks ended 30 March 2019.

“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations. Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for FY 2020.”

Marco Gobbetti, Burberry Chief Executive Officer

£ million

30 March

31 March

% change

Period ended

2019

2018

reported FX

CER

Revenue

2,720

2,733

0

(1)

Revenue ex. Beauty wholesale*

2,720

2,660

2

2

      Retail comparable store sales*

2%

3%

Adjusted operating profit*

438

467

(6)

0

Adjusted operating profit margin

16.1%

17.1%

Reported operating profit

437

410

7

Adjusted Diluted EPS (pence)*

82.1

82.1

0

7

Diluted EPS (pence)

81.7

68.4

19

Free cash flow

301

484

Dividend (pence)

42.5

41.3

3

*See page 12 for definitions of alternative performance measures

 

· Successfully launched new creative vision including new product aesthetic

· Built brand heat and shifted consumer perceptions with improved social media reach, wider press coverage and organic endorsement from influencers

· Excellent wholesale sell-in of new collections including recent February runway

· Strong double-digit percentage growth year on year from Riccardo Tisci’s first collections, consistent with our ambitions

· Financial performance in line with guidance; savings ahead of plan

Outlook

· Confirming guidance for broadly stable revenue and adjusted operating margin at CER in FY 2020

· As planned, we anticipate a more pronounced weighting of operating profit in H2 relative to H1 in FY 2020 than in the prior year**

· Increasing cumulative cost saving guidance to £135m in FY 2022

· Announcing share buyback of £150m