Burberry Group PLC has released its preliminary results for the 52 weeks ended 30 March 2024. Despite facing challenges due to slowing luxury demand, the company has made progress in refocusing its brand image, evolving its product, and strengthening distribution. The financial results for FY24 underperformed original expectations, with revenue remaining flat at constant exchange rates and a 4% decrease in reported revenue. Comparable store sales saw a 1% decrease, with a robust first half offset by a challenging second half. Adjusted operating profit fell by 25% at constant exchange rates and 34% reported, with margins at 15.5% and 14.1% respectively. Free cash flow was £63 million, with a £400 million share buyback completed in the year. The proposed full-year dividend is 61.0p.
The company has made strategic progress in FY24, including refocusing storytelling around Modern British Luxury, improving brand perception, and strengthening the distribution network. Looking ahead to FY25, Burberry aims to refine brand expression, increase product focus in storytelling, and strengthen engagement with new and existing clients. The company also plans to enhance the retail store experience, focus on conversion, elevate the customer experience online, and rationalize the wholesale channel in EMEIA to increase control of distribution. Additionally, Burberry aims to improve operational delivery, drive cost efficiencies, and advance its sustainability agenda.
In the context of an uncertain external environment, Burberry expects the first half of FY25 to remain challenging, with the benefit of actions expected to be seen in the second half. The company anticipates a currency headwind of approximately £30 million to revenue and £20 million to adjusted operating profit in FY25. The financial information for the 52 weeks ended 30 March 2024 and 1 April 2023 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 30 March 2024 and 1 April 2023 has been extracted from the consolidated financial statements of Burberry Group plc for the 52 weeks ending 30 March 2024, which have been approved by the directors on 14 May 2024 and will be delivered to the Registrar of Companies in due course.