Burberry Group PLC has released a trading update, revealing a challenging December trading period and a deceleration in key trading metrics. The company's retail revenue for the 13 weeks ended 30 December 2023 was reported at £706 million, representing a 7% decrease compared to the previous year. Comparable store sales also saw a decline of 4% during this period. The company attributes these challenges to the backdrop of slowing luxury demand, particularly in the Americas, where comparable store sales dropped by 15%.
Burberry remains committed to its strategy to realize its potential as a modern British luxury brand, with a revenue ambition of £4 billion. However, due to the impact of the slowdown in luxury demand, the company now expects its adjusted operating profit for the financial year ending 30 March 2024 to be in the range of £410 million to £460 million, below its previous guidance. Additionally, the company anticipates a currency headwind of approximately £120 million to revenue and £60 million to adjusted operating profit based on foreign exchange rates effective as of 29 December 2023.
The company's CEO, Jonathan Akeroyd, expressed confidence in Burberry's strategy and potential, despite the current challenges. The company plans to issue its preliminary results for the 52 weeks ending 30 March on 15 May 2024. This trading update was originally scheduled for 19 January 2024.
Burberry Group PLC is a British luxury brand listed on the London Stock Exchange and is a constituent of the FTSE 100 index. As of 30 December 2023, the company operated 225 retail stores globally, along with concessions, outlets, and franchise stores. The company's financial information in the announcement is unaudited, and all metrics and commentary are reported at constant exchange rates unless stated otherwise.
The company emphasized that certain statements made in the announcement are forward-looking and subject to risks and uncertainties. Burberry Group PLC undertakes no obligation to update these forward-looking statements and will not publicly release any revisions that may result from events or circumstances arising after the date of the document. This announcement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any Burberry Group PLC shares.
In conclusion, Burberry Group PLC's trading update reflects the challenges posed by slowing luxury demand, leading to a revision in its full-year guidance for adjusted operating profit. Despite these challenges, the company remains committed to its strategy and revenue ambitions as a modern British luxury brand.