Burberry Group plc (LON:BRBY) has announced its preliminary results for 52 weeks ended 27 March 2021.
- Recovery accelerated through the year leading to Q4 FY21 comparable store sales increasing 32% year on year and -5% compared with Q4 FY19 despite an average 16% of stores being closed. Within this, full-price sales grew 63% in the quarter (12% versus Q4 FY19) driven by Mainland China, Korea and the U.S.
- For the full year revenue decreased 10% at CER, impacted by store closures and reduced tourism, with strong recovery in the second half +8% at CER (-30% in H1 FY21): Within this, FY21 full-price comparable store sales grew +7%, accelerating through the year driven by:
- excellent response to product, with growth in our strategic categories and in selling prices
- increasing brand strength attracting new and younger customers
- local customer traction, thanks to innovative selling formats during lockdowns
- Leveraged digital leadership, including opening our Social Retail store in Shenzhen Bay, driving double digit comparable sales growth across all regions
- Adjusted operating profit £396m, -8% CER, reported operating profit £521m up 176%
- Full year dividend reinstated at FY19 levels of 42.5p on the back of strong cash generation
|27 March |
|Retail comparable store sales*||(9%)||(3%)|
|Adjusted operating profit*||396||433||(9)||(8)|
|Adjusted operating profit margin *||16.9%||16.4%||+50bps||+50bps|
|Adjusted Diluted EPS (pence)*||67.3||78.7||(14)||(14)|
|Reported operating profit||521||189||176|
|Reported operating profit margin||22.2%||7.2%|
|Reported diluted EPS (pence)||92.7||29.8||211|
|Free cash flow**||349||66|
*See page 20 for definitions of alternative performance measures
In our next chapter we will focus on delivering growth whilst continuing to enhance the quality of our business. Taking FY20 as the base year, we expect revenue to grow at a high single digit percentage compound annual growth rate at FY21 CER in the medium term. This will be underpinned by the continued outperformance of full-price sales. We will continue to strengthen brand equity by exiting markdowns in mainline stores in FY22. This is a headwind against our comparable store sales growth amounting to a mid-single digit percentage in the full year.
In FY22 adjusted operating margin progression will be impacted by operating expense normalisation and increased investment to accelerate growth, with more meaningful margin accretion thereafter.
We are focused on and continue to invest in our sustainability and social goals by becoming carbon neutral by 2022, championing diversity and inclusion and positively impacting one million people in the communities in which we operate.
Further guidance is included in the Appendix.
**FY22 outlook on page 17
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 profit measures, comparable sales, free cash flow, cash conversion, adjusted EBITDA and net debt. The definition of these alternative performance measures are in the Appendix on page 20.
Certain financial data within this announcement have been rounded.
“In the last three years we have transformed our business and built a new Burberry Group, anchored firmly in luxury. We have revitalised our brand image, renewed our product offer and elevated our customer experience while making further progress on our ambitious social and environmental agenda. In spite of COVID-19, we achieved our objectives for the period and delivered a strong set of results in FY21, ending the year with good full-price sales growth. In this next chapter, supported by these foundations and the strength of our teams, we will accelerate our growth and deliver value creation while continuing to build a more inclusive and sustainable future.”
Marco Gobbetti, Chief Executive Officer