REG - Burberry Group PLC - Burberry FY25 Preliminary Results
14/05/2025 07:00
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RNS Number : 5472I Burberry Group PLC 14 May 2025
14 May 2025
BURBERRY GROUP PLC
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 52 weeks ended 52 weeks ended YoY % change YoY % change
£ million 29 March 2025 30 March 2024 Reported FX CER
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.
Enquiries
Investors and analysts 020 3367 3524
Lauren Wu Leng VP, Investor Relations lauren.wuleng@burberry.com
Media 020 3367 3764
Samantha Pacan VP, Corporate Relations samantha.pacan@burberry.com
· 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/ (https://www.burberryplc.com/) , you can click
here (https://streamstudio.world-television.com/1349-2475-41420/en) 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
Certain statements made in this announcement are forward-looking statements.
Such statements are based on current expectations and are subject to a number
of risks and uncertainties that could cause actual results to differ
materially from any expected future results in forward-looking statements.
Burberry Group plc undertakes no obligation to update these forward-looking
statements and will not publicly release any revisions it may make to these
forward-looking statements that may result from events or circumstances
arising after the date of this document. Nothing in this announcement should
be construed as a profit forecast. All persons, wherever located, should
consult any additional disclosures that Burberry Group plc may make in any
regulatory announcements or documents which it publishes. All persons,
wherever located, should take note of these disclosures. This announcement
does not constitute an invitation to underwrite, subscribe for or otherwise
acquire or dispose of any Burberry Group plc shares, in the UK, or in the US,
or under the US Securities Act 1933 or in any other jurisdiction.
Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent
of the FTSE 250 index. ADR symbol OTC:BURBY.
BURBERRY, the Equestrian Knight Device, the Burberry Check, and the Thomas
Burberry Monogram and Print are trademarks belonging to Burberry.
www.burberryplc.com
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LinkedIn: Burberry
SUMMARY INCOME STATEMENT
Period ended 52 weeks ended 52 weeks ended YoY % change YoY % change
£ million 29 March 2025 30 March Reported FX CER
2024
Revenue 2,461 2,968 (17) (15)
Cost of sales (923) (959)
Gross profit 1,538 2,009 (23) (21)
Gross margin 62.5% 67.7% (520bps) (470bps)
Adjusted net operating expenses* (1,512) (1,591) (5) (3)
Adjusted net opex as a % of sales* 61.5% 53.6% 780bps 740bps
Adjusted operating profit* 26 418 (94) (88)
Adjusted operating margin* 1.0% 14.1% (1300bps) (1210bps)
Adjusting operating items (29) -
Operating (loss)/profit (3) 418 (101)
Operating margin (0.1%) 14.1% (1420bps)
Net finance expense (63) (35) 82
(Loss)/profit before taxation (66) 383 (117)
Taxation (9) (112) (92)
Non-controlling interest - (1) n/a
Attributable (loss)/profit (75) 270 (128)
Adjusted (loss)/profit before taxation* (37) 383 (110) (103)
Adjusted diluted EPS (pence)* (14.8) 73.9 (120) (107)
Diluted EPS (pence) (20.9) 73.9 (128)
Weighted average number of diluted ordinary shares (millions)** 358.4 366.2 (2)
*Excludes adjusting items. All items below adjusting operating items on a
reported basis unless otherwise stated. For detail, see appendix.
**As the Group incurred an attributable loss for the 52 weeks to 29 March
2025, the effect of 0.9m dilutive shares was antidilutive and therefore not
included in the calculation of diluted loss per share for the period. For
detail see note 9 of the Financial Statements.
FINANCIAL PERFORMANCE
Revenue by channel
Period ended 52 weeks ended 52 weeks ended YoY % change YoY % change
£ million 29 March 30 March Reported FX CER
2025 2024
Retail 2,076 2,400 (13) (11)
Comparable store sales growth (12%) (1%)
Wholesale 319 506 (37) (35)
Licensing 66 62 6 9
Revenue 2,461 2,968 (17) (15)
In FY25, comparable store sales fell 12%. The contribution from space was 1%,
leading to an 11% decline in retail sales at CER and a 13% decline at reported
rates.
Comparable store sales growth by region
FY25 vs LY
Q1 Q2 H1 Q3 Q4 H2 FY
Group (21%) (20%) (20%) (4%) (6%) (5%) (12%)
Asia Pacific (23%) (28%) (25%) (9%) (9%) (9%) (16%)
EMEIA (16%) (10%) (13%) (2%) (4%) (3%) (8%)
Americas (23%) (18%) (21%) 4% (4%) 1% (9%)
Asia Pacific comparable store sales declined 16% in FY25 and 9% in Q4.
· Mainland China declined 15% in the year and 8% in Q4. Globally, the
Chinese customer group was a mid-single digit percentage lower than last year
in Q4
· South Korea fell 18% in the year and 11% in Q4
· Japan remained in growth, up 1% in the year and 4% in Q4 boosted by
tourist spend mainly from Chinese customers
· South Asia Pacific declined 28% in the year and 16% in Q4.
EMEIA comparable store sales declined 8% in FY25 and 4% in Q4. Growth from
local customers partially offset a decline in tourist spending in Q4. Business
in our UK home market continues to be seriously impacted by the withdrawal of
VAT refunds for overseas visitors in 2021 which has made the UK the least
competitive destination in Europe for tourist shopping.
Americas comparable store sales fell 9% in the year and 4% in Q4. Globally,
the Americas customer was in line with the regional performance.
By product
· Outerwear and scarves continued to perform better than the group
average in the year and Q4
· Ready-to-wear performed broadly in line with the group average in the
year and Q4
· Leather goods lagged the group average in the year and Q4.
Store footprint
We opened 26 stores in the year and closed 26, with 422 directly operated
stores as at 29 March 2025.
Wholesale
Wholesale revenue declined 35% at CER and 37% at reported rates in FY25 as a
result of a strategic review of our partners, as well as the challenging
consumer demand environment.
Licensing
Licensing revenue grew 9% at CER and 6% at reported rates, driven by continued
strength in fragrance.
OPERATING (LOSS)/PROFIT ANALYSIS
Adjusted operating profit
Period ended 52 weeks ended 52 weeks ended YoY % change YoY % change
£ million 29 March 2025 30 March 2024 Reported FX CER
Revenue 2,461 2,968 (17) (15)
Cost of sales (923) (959) (4) (2)
Gross profit 1,538 2,009 (23) (21)
Gross margin % 62.5% 67.7% (520bps) (470bps)
Adjusted net operating expenses* (1,512) (1,591) (5) (3)
Adjusted net opex as a % of sales* 61.5% 53.6% 780bps 740bps
Adjusted operating profit* 26 418 (94) (88)
Adjusted operating margin %* 1.0% 14.1% (1300bps) (1210bps)
*Excludes adjusting items
· Adjusted operating profit was £26m with an adjusted operating
margin of 1%.
· Gross margin declined by 470bps at CER and 520bps at reported
rates, driven mostly by inventory exit to address our overhang. These actions
delivered gross inventory of -7% at CER and -9% at reported rates as of 29
March 2025.
· Adjusted net operating expenses reduced by 3% at CER and 5% at
reported rates. This was driven by tight cost control alongside a reduction in
our variable costs. We delivered £24m in savings from our organisational
efficiency programme initiated during the year.
· FX was a headwind, impacting adjusted operating profit by £25m.
ADJUSTING ITEMS(*)
Adjusting items were a £29m charge (FY24: £nil).
Period ended 52 weeks ended 52 weeks ended
£ million 29 March 2025 30 March 2024
Restructuring costs (29) -
Adjusting items (29) -
*For detail on adjusting items see note 6 of the Financial Statements
Restructuring costs of £29m (FY24: £nil) were incurred, arising primarily as
a result of the Burberry Forward transformation programme initiated during the
period. The costs principally related to redundancies and consultancy costs
and were recorded in operating expenses.
ADJUSTED (LOSS)/PROFIT BEFORE TAX*
After an adjusted net finance expense of £63m (FY24: £35m), adjusted loss
before tax was £37m (FY24 adjusted profit before tax: £383m).
*For detail on adjusting items see note 6 of the Financial Statements
TAXATION*
The Group's adjusted effective tax rate was -43.5% (FY24: 29.2%) and the
reported effective tax rate was -13.2% (FY24: 29.2%). The change in the FY25
reported tax rate versus FY24 was driven by reduced profitability causing
routine disallowed expenses and prior year adjustments to have a greater
impact.
*For detail see note 8 of the Financial Statements
CASH FLOW
Represented statement of cash flows
The following table is a representation of the cash flows.
Period ended 52 weeks ended 52 weeks ended
£ million 29 March 30 March
2024
2025
Adjusted operating profit 26 418
Depreciation and amortisation 413 379
Working capital 75 (166)
Other including adjusting items 12 34
Cash generated from operating activities 526 665
Payment of lease principal and related cash flows (225) (235)
Capital expenditure (151) (208)
Proceeds from disposal of non-current assets 12 -
Interest (54) (20)
Tax (43) (139)
Free cash flow* 65 63
*For a definition of free cash flow see page 12
Free cash flow was £65m in the year (FY24: £63m). The major components were:
· Cash generated from operating activities decreased by £139m to
£526m due primarily to:
o A £392m reduction in adjusted operating profit
o A working capital inflow of £75m (FY24: £166m outflow) driven by lower
inventory levels
· Capital expenditure of £151m (FY24: £208m) as planned
· Tax of £43m (FY24: £139m) reflecting lower profitability
Cash net of overdrafts on 29 March 2025 was £708m (30 March 2024: £362m). On
29 March 2025 borrowings were £738m with a £450m bond raised in the year, in
addition to the existing £300m sustainability bond maturing in September
2025. This resulted in net debt of £30m before lease liabilities of £1,081m
(30 March 2024: net cash £63m). After lease liabilities, net debt in the
period was £1,111m (30 March 2024: £1,125m). Net Debt/Adjusted EBITDA was
2.3x. The increase in leverage from 1.4x at 30 March 2024 was driven by lower
profitability. The Group's existing £300m Revolving Credit Facility (RCF), as
well as the £75m RCF entered into in the year both remain undrawn.
Period ended 52 weeks ended 52 weeks ended
£ million 29 March 30 March
2024
2025
Adjusted EBITDA 483 811
Cash net of overdrafts (708) (362)
Bond 738 299
Lease debt 1,081 1,188
Net Debt* 1,111 1,125
Net Debt/Adjusted EBITDA 2.3x 1.4x
*For a definition of adjusted EBITDA and net debt see page 12
APPENDIX
Detailed guidance for FY26
Item Financial impact
Impact of retail space on revenues Space is expected to be broadly stable in FY26.
Wholesale revenue Wholesale is expected to decline by a mid-teens percentage in H1 FY26.
Opex Annualised cost savings expected to be £80m in FY26, of which £24m was
delivered in FY25.
Adjusting items Restructuring charge expected to be around £50m in FY26.
Currency As at 2 May 2025 spot rates, the impact of year-on-year exchange rate
movements is expected to be a c.£55m headwind on revenue and c.£10m headwind
on adjusted operating profit.
Capex Capex is expected to be around £130m.
Note: Guidance based on CER at FY25 rates
Retail/wholesale revenue by destination*
Period ended 52 weeks ended 29 March 52 weeks ended YoY % change
30 March
£ million 2025 2024 Reported FX CER
Asia Pacific (94% retail)* 1,043 1,286 (19) (16)
EMEIA (76% retail)* 842 1,017 (17) (16)
Americas (90% retail)* 510 603 (15) (13)
Total (87% retail)* 2,395 2,906 (18) (15)
*Mix based on FY25
Retail/wholesale revenue by product division
Period ended 52 weeks ended 52 weeks ended YoY % change
29 March 30 March
£ million 2025 2024 Reported FX CER
Accessories 841 1,055 (20) (18)
Womenswear 718 860 (17) (14)
Menswear 732 842 (13) (11)
Childrenswear and other 104 149 (30) (28)
Total 2,395 2,906 (18) (15)
Store portfolio
Directly operated stores
Stores Concessions Outlets Total Franchise stores
At 30 March 2024 227 139 56 422 33
Additions 16 10 - 26 1
Closures (14) (10) (2) (26) (1)
At 29 March 2025 229 139 54 422 33
Store portfolio by region*
Directly operated stores
Stores Concessions Outlets Total Franchise stores
At 29 March 2025
Asia Pacific 126 89 22 237 10
EMEIA 45 38 17 100 23
Americas 58 12 15 85 -
Total 229 139 54 422 33
*Excludes the impact of pop up stores
Adjusted operating profit* 52 weeks 52 weeks % change % change
Period ended ended 29 March ended 30 March Reported FX CER
£ millions 2025 2024
Retail/wholesale (36) 359 (110) (104)
Licensing 62 59 6 9
Adjusted operating profit 26 418 (94) (88)
Adjusted operating margin 1.0% 14.1% (1300bps) (1210bps)
*For additional detail on adjusting items see note 6 of the Financial
Statements
Exchange rates Spot rates Average effective exchange rates
2 May FY25 FY24
£1= 2025
Euro 1.17 1.19 1.16
US Dollar 1.33 1.28 1.26
Chinese Renminbi 9.65 9.21 9.01
Hong Kong Dollar 10.28 9.98 9.84
South Korean Won 1,861 1,781 1,657
Japanese Yen 192 194 182
(Loss)/Profit before tax reconciliation
Period ended 52 weeks ended 52 weeks ended % change % change
29 March 2025
30 March 2024
£ million Reported FX CER
Adjusted (loss)/profit before tax (37) 383 (110) (103)
Adjusting items* (29) - n/a
(Loss)/profit before tax (66) 383 (117)
*For detail on adjusting items see note 6 of the Financial Statements
Alternative performance measures
Alternative performance measures (APMs) are non-GAAP measures. The Board uses
the following APMs to describe the Group's financial performance and for
internal budgeting, performance monitoring, management remuneration target
setting and external reporting purposes.
APM Description and purpose GAAP measure reconciled to
Constant Exchange Rates (CER) This measure removes the effect of changes in exchange rates compared to the Results at reported rates
prior period. The constant exchange rate incorporates both the impact of the
movement in exchange rates on the translation of overseas subsidiaries'
results and also on foreign currency procurement and sales through the Group's
UK supply chain.
Comparable sales The year-on-year change in sales from stores trading over equivalent time Retail Revenue:
periods and measured at constant foreign exchange rates. It also includes
online sales. This measure is used to strip out the impact of permanent store
openings and closings, or those closures relating to refurbishments, allowing
Period ended 52 weeks ended 29 March 52 weeks ended 30 March
a comparison of equivalent store performance against the prior period.
YoY% 2025 2024
Comparable sales (12%) (1%)
Change in space 1% 2%
CER retail (11%) 1%
FX (2%) (5%)
Retail revenue (13%) (4%)
Adjusted Profit Adjusted profit measures are presented to provide additional consideration of Reported Profit:
the underlying performance of the Group's ongoing business. These measures
remove the impact of those items which should be excluded to provide a A reconciliation of reported profit before tax to adjusted profit before tax
consistent and comparable view of performance. and the Group's accounting policy for adjusted profit before tax are set out
in the financial statements.
Adjusted Profit
Adjusted profit measures are presented to provide additional consideration of
the underlying performance of the Group's ongoing business. These measures
remove the impact of those items which should be excluded to provide a
consistent and comparable view of performance.
Reported Profit:
A reconciliation of reported profit before tax to adjusted profit before tax
and the Group's accounting policy for adjusted profit before tax are set out
in the financial statements.
Free Cash Flow Free cash flow is defined as net cash generated from operating activities less Net cash generated from operating activities:
capital expenditure plus cash inflows from disposal of fixed assets and
including cash outflows for lease principal payments and other lease related
items.
Period ended 52 weeks ended 52 weeks ended
£m 29 March 2025 30 March 2024
Net cash generated from operating activities 429 506
Capex (151) (208)
Lease principal and related cash flows (225) (235)
Proceeds from disposal of non-current assets 12 -
Free cash flow 65 63
Cash Conversion Cash conversion is defined as free cash flow pre-tax/adjusted (loss)/profit Net cash generated from operating activities:
before tax. It provides a measure of the Group's effectiveness in converting Period ended 52 weeks 52 weeks ended
its profit into cash.
£m ended 30 March 2024
29 March
2025
Free cash flow 65 63
Tax paid 43 139
Free cash flow before tax 108 202
Adjusted (loss)/profit before tax (37) 383
Cash conversion n/a 53%
Net Debt Net debt is defined as the lease liabilities recognised on the balance sheet Cash net of overdrafts:
plus borrowings less cash net of overdrafts.
Period ended As at As at
£m 29 March 30 March
2025 2024
Cash net of overdrafts 708 362
Lease liabilities (1,081) (1,188)
Borrowings (738) (299)
Net debt (1,111) (1,125)
Adjusted EBITDA Adjusted EBITDA* is defined as operating (loss)/profit, excluding adjusting Period ended 52 weeks ended 52 weeks ended
operating items, depreciation and impairment of property, plant and equipment,
depreciation and impairment of right of use assets and amortisation and
impairment of intangible assets. Any depreciation, amortisation or impairment
included in adjusting operating items are not double counted. Adjusted EBITDA £m 29 March 30 March
is shown for the calculation of Net Debt/EBITDA for our leverage ratios.
*Our definition of adjusted EBITDA has been updated to reflect the exclusion
of the impairment of right-of-use and other non-current assets where this 2025 2024
income statement impact is included within adjusted operating (loss)/profit. Operating (loss)/profit (3) 418
Prior to this change, adjusted EBITDA was £797m for the 52 weeks ended 30 Adjusting operating items 29 -
March 2024. Amortisation and impairment of intangible assets 58 42
Depreciation and impairment of property, plant and equipment 122 108
Depreciation and impairment of right-of-use assets 277 243
Adjusted EBITDA 483 811
Cash Conversion
Cash conversion is defined as free cash flow pre-tax/adjusted (loss)/profit
before tax. It provides a measure of the Group's effectiveness in converting
its profit into cash.
Net cash generated from operating activities:
Period ended 52 weeks 52 weeks ended
£m ended 30 March 2024
29 March
2025
Free cash flow 65 63
Tax paid 43 139
Free cash flow before tax 108 202
Adjusted (loss)/profit before tax (37) 383
Cash conversion n/a 53%
Net Debt
Net debt is defined as the lease liabilities recognised on the balance sheet
plus borrowings less cash net of overdrafts.
Cash net of overdrafts:
Period ended As at As at
£m 29 March 30 March
2025 2024
Cash net of overdrafts 708 362
Lease liabilities (1,081) (1,188)
Borrowings (738) (299)
Net debt (1,111) (1,125)
Adjusted EBITDA
Adjusted EBITDA* is defined as operating (loss)/profit, excluding adjusting
operating items, depreciation and impairment of property, plant and equipment,
depreciation and impairment of right of use assets and amortisation and
impairment of intangible assets. Any depreciation, amortisation or impairment
included in adjusting operating items are not double counted. Adjusted EBITDA
is shown for the calculation of Net Debt/EBITDA for our leverage ratios.
*Our definition of adjusted EBITDA has been updated to reflect the exclusion
of the impairment of right-of-use and other non-current assets where this
income statement impact is included within adjusted operating (loss)/profit.
Prior to this change, adjusted EBITDA was £797m for the 52 weeks ended 30
March 2024.
Period ended 52 weeks ended 52 weeks ended
£m 29 March 30 March
2025 2024
Operating (loss)/profit (3) 418
Adjusting operating items 29 -
Amortisation and impairment of intangible assets 58 42
Depreciation and impairment of property, plant and equipment 122 108
Depreciation and impairment of right-of-use assets 277 243
Adjusted EBITDA 483 811
Group Income Statement
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Revenue 4 2,461 2,968
Cost of sales (923) (959)
Gross profit 1,538 2,009
Operating expenses (1,564) (1,604)
Other operating income 23 13
Net operating expenses (1,541) (1,591)
Operating (loss)/profit (3) 418
Financing
Finance income 25 31
Finance expense (88) (66)
Net finance expense 7 (63) (35)
(Loss)/profit before taxation 5 (66) 383
Taxation 8 (9) (112)
(Loss)/profit for the year (75) 271
Attributable to:
Owners of the Company (75) 270
Non-controlling interest - 1
(Loss)/profit for the year (75) 271
(Loss)/earnings per share
Basic 9 (20.9)p 74.1p
Diluted 9 (20.9)p 73.9p
£m £m
Reconciliation of adjusted profit before taxation:
(Loss)/profit before taxation (66) 383
Adjusting operating items:
Net operating expenses 6 29 -
Adjusted (loss)/profit before taxation - non-GAAP measure (37) 383
Adjusted (loss)/earnings per share - non-GAAP measure
Basic 9 (14.8)p 74.1p
Diluted 9 (14.8)p 73.9p
Dividends per share
Interim 10 - 18.3p
Proposed final (not recognised as a liability at 29 March/30 March) 10 - 42.7p
Group Statement of Comprehensive Income
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
(Loss)/profit for the year (75) 271
Other comprehensive (loss)/income(1):
Cash flow hedges 20 1 (3)
Foreign currency translation differences 20 (25) (34)
Tax on other comprehensive income - 1
Other comprehensive loss for the year, net of tax (24) (36)
Total comprehensive (loss)/income for the year (99) 235
Total comprehensive (loss)/income attributable to:
Owners of the Company (99) 234
Non-controlling interest - 1
(99) 235
1. All items included in other comprehensive income may subsequently be
reclassified to profit and loss in a future period.
Group Balance Sheet
Note As at As at
29 March
30 March
2025
2024
£m
£m
ASSETS
Non-current assets
Intangible assets 11 229 267
Property, plant and equipment 12 398 406
Right-of-use assets 13 867 1,013
Deferred tax assets 233 208
Trade and other receivables 14 48 52
1,775 1,946
Current assets
Inventories 15 424 507
Trade and other receivables 14 309 340
Derivative financial assets 11 2
Income tax receivables 95 122
Cash and cash equivalents 16 813 441
Assets held for sale 12 - 12
1,652 1,424
Total assets 3,427 3,370
LIABILITIES
Non-current liabilities
Trade and other payables 17 (54) (63)
Lease liabilities 18 (866) (959)
Borrowings 19 (438) (299)
Deferred tax liabilities (1) (1)
Derivative financial liabilities (3) -
Provisions for other liabilities and charges (33) (37)
(1,395) (1,359)
Current liabilities
Trade and other payables 17 (405) (439)
Bank overdrafts 19 (105) (79)
Lease liabilities 18 (215) (229)
Borrowings 19 (300) -
Derivative financial liabilities (1) (4)
Income tax liabilities (58) (86)
Provisions for other liabilities and charges (27) (20)
(1,111) (857)
Total liabilities (2,506) (2,216)
Net assets 921 1,154
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital 20 - -
Share premium account 231 231
Capital reserve 20 41 41
Hedging reserve 20 3 2
Foreign currency translation reserve 20 173 198
Retained earnings 466 675
Equity attributable to owners of the Company 914 1,147
Non-controlling interest in equity 7 7
Total equity 921 1,154
Group Statement of Changes in Equity
Attributable to owners
of the Company
Note Ordinary share capital Share premium account Other reserves Retained earnings Total Non-controlling interest Total equity
£m
£m
£m
£m
£m
£m
£m
Balance as at 1 April 2023 - 230 277 1,026 1,533 6 1,539
Profit for the year - - - 270 270 1 271
Other comprehensive income:
Cash flow hedges 20 - - (3) - (3) - (3)
Foreign currency translation differences 20 - - (34) - (34) - (34)
Tax on other comprehensive income - - 1 - 1 - 1
Total comprehensive income for the year - - (36) 270 234 1 235
Transactions with owners:
Employee share incentive schemes
Equity share awards - - - 16 16 - 16
Tax on share awards - - - (2) (2) - (2)
Exercise of share options - 1 - - 1 - 1
Purchase of own shares
Share buyback - - - (402) (402) - (402)
Dividends paid in the year - - - (233) (233) - (233)
Balance as at 30 March 2024 - 231 241 675 1,147 7 1,154
Loss for the year - - - (75) (75) - (75)
Other comprehensive income:
Cash flow hedges 20 - - 1 - 1 - 1
Foreign currency translation differences 20 - - (25) - (25) - (25)
Total comprehensive loss for the year - - (24) (75) (99) - (99)
Transactions with owners:
Employee share incentive schemes
Equity share awards - - - 18 18 - 18
Dividends paid in the year - - - (152) (152) - (152)
Balance as at 29 March 2025 - 231 217 466 914 7 921
Group Statement of Cash Flows
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Cash flows from operating activities
(Loss)/profit before tax (66) 383
Adjustments to reconcile profit before tax to net cash flows:
Amortisation of intangible assets 11 54 42
Depreciation of property, plant and equipment 12 112 103
Depreciation of right-of-use assets 13 247 234
Impairment charge of intangible assets 11 4 -
Impairment charge of property, plant and equipment 12 10 5
Impairment charge of right-of-use assets 13 32 9
Loss on disposal of intangible assets - 3
Gain on modification of right-of-use assets (15) (4)
(Gain)/loss on derivative instruments (8) 5
Charge in respect of employee share incentive schemes 18 16
Net finance expense 63 35
Working capital changes:
Decrease/(increase) in inventories 80 (57)
Decrease/(increase) in receivables 36 (32)
Decrease in payables and provisions (41) (77)
Cash generated from operating activities 526 665
Interest received 21 32
Interest paid (75) (52)
Taxation paid (43) (139)
Net cash generated from operating activities 429 506
Cash flows from investing activities
Purchase of property, plant and equipment (122) (158)
Purchase of intangible assets (29) (50)
Proceeds from sale of property, plant and equipment 12 -
Initial direct costs of right-of-use assets 1 (4)
Proceeds from termination of lease 11 -
Payment in respect of acquisition of subsidiary - (19)
Net cash outflow from investing activities (127) (231)
Cash flows from financing activities
Dividends paid in the year 10 (152) (233)
Proceeds from borrowings 19 439 -
Payment of deferred consideration for acquisition of non-controlling interest 17 (2) -
Payment of lease principal 18 (232) (231)
Payment on termination of lease 18 (5) -
Issue of ordinary share capital - 1
Purchase of own shares through share buyback 20 - (400)
Purchase of own shares through share buyback - stamp duty and fees 20 - (2)
Net cash inflow/(outflow) from financing activities 48 (865)
Net increase/(decrease) in cash net of overdrafts 350 (590)
Effect of exchange rate changes (4) (9)
Cash net of overdrafts at beginning of year 362 961
Cash net of overdrafts 708 362
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Cash and cash equivalents 16 813 441
Bank overdrafts 19 (105) (79)
Cash net of overdrafts 708 362
1. Basis of preparation
The financial information contained within this report has been prepared in
accordance with international accounting standards in conformity with the
requirements of the Companies Act 2006 and International Financial Reporting
Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in
the European Union, IFRS Interpretations Committee (IFRS IC) interpretations
and parts of the Companies Act 2006 applicable to companies reporting under
IFRS. This financial information does not constitute the Burberry Group's (the
Group) Annual Report and Accounts within the meaning of Section 435 of the
Companies Act 2006.
Statutory accounts for the 52 weeks to 30 March 2024 have been filed with the
Registrar of Companies and those for 2025 will be delivered in due course. The
reports of the auditors on those statutory accounts for the 52 weeks to 30
March 2024 and 52 weeks to 29 March 2025 were unqualified, did not contain an
emphasis of matter paragraph and did not contain a statement under either
section 400(2) or section 498(3) of the Companies Act 2006.
The consolidated financial statements are presented in £m. Financial ratios
are calculated using unrounded numbers.
Going concern
In considering the appropriateness of adopting the going concern basis in
preparing the financial statements, the Directors have assessed the potential
cash generation of the Group. This assessment covers the period of a minimum
of 12 months from the date of signing the financial statements. The Directors
have also considered the forecast for the period up to 26 September 2026, for
indicators that the going concern basis of preparation is not appropriate.
The scenarios considered by the Directors include a severe but plausible
downside scenario reflecting the Group's base plan adjusted for severe but
plausible impacts from the Group's principal risks. This central planning
scenario is informed by a comprehensive review of the macroeconomic scenarios
using third-party projections of macroeconomic data for the luxury fashion
industry which reflects the current uncertain outlook. The Group's central
planning scenario reflects a balanced projection with a continued focus to
stabilise the business and position the brand for profitable sustainable
growth.
As a sensitivity, this central planning scenario has been stressed to reflect
the aggregation of severe impacts arising linked to our principal risks which
in total represents a 20% downgrade to revenues in the 18-month period to 26
September 2026 as well as the associated consequences for EBITDA and cash.
Management considers that this represents a severe but plausible downside
scenario appropriate for assessing going concern.
The severe but plausible downside modelled the following risks occurring
simultaneously:
· A more severe and prolonged reduction in the GDP growth assumptions
across the markets in which we operate combined with a reduction to our global
consumer demand arising from a change in consumer preference compared to our
central planning scenario
· An increase in geopolitical tension which leads to incremental
unmitigated tariff risks compared to the central planning scenario
· A significant reputational incident such as negative sentiment
propagated through social media
· The impact of a business interruption event, resulting in a two-week
interruption arising from the supply chain impact, and interruption to one of
our channels
· The occurrence of a one-time physical risk relating to climate change
in FY 2026/27 and the materialisation of a severe but plausible ongoing market
risk relating to climate change in line with a scenario reflecting a 2°C
global temperature increase compared to pre-industrial levels
· The payment of a settlement arising from a regulatory or
compliance-related matter
· The impact of not delivering the anticipated cost savings from the
Burberry Forward transformation programme
· A short-term impact of a 10% weakening in a key non-sterling currency
for the Group before it is recovered through price adjustment
Further mitigating actions within management control would be taken under each
scenario, including working capital reduction measures and limiting capital
expenditure and/or variable marketing costs.
The Directors have also considered the Group's current liquidity and available
facilities. As at 29 March 2025, the Group Balance Sheet reflects cash net of
overdrafts of £708 million. In addition, the Group has access to a £300
million revolving credit facility (£300 million RCF) which matures in
November 2027, and a £75 million revolving credit facility (£75 million RCF)
which matures in March 2027 which are currently undrawn. The £300 million
sustainability bond matures within the going concern period on 21 September
2025. The Group's central planning scenario includes the repayment of the
£300 million sustainability bond with existing cash and drawing the £75
million RCF. The going concern assessment does not rely upon either the £75
million or £300 million RCFs and instead assumes mitigating actions within
management control would be taken.
Details of cash, overdrafts, borrowings and facilities are set out in notes 16
and 19 respectively of these financial statements.
In all the scenarios assessed, taking into account liquidity and available
resources, the Group is able to maintain sufficient liquidity to continue
trading throughout the going concern period up to 26 September 2026. On the
basis of the assessment performed, the Directors consider it is appropriate to
continue to adopt the going concern basis in preparing the consolidated
financial statements for the 52 weeks ended 29 March 2025.
New standards, amendments and interpretations adopted in the period
A number of amendments to standards are effective for the 52 weeks to 29 March
2025, but they do not have a material impact on the financial statements of
the Group.
Standards not yet adopted
Certain new accounting standards and amendments to standards have been
published that are not yet mandatory for the 52 weeks to 29 March 2025 and
have not been early adopted by the Group. The Group is assessing the impact of
these standards on the financial statements and the results will be
communicated in future periods, including the impact from Classification and
Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7, which
is effective for the reporting period beginning 29 March 2026, and may have an
impact on the Group. The Group does expect a material impact from IFRS 18
Presentation and Disclosure in Financial Statements in the Group's primary
financial statements. IFRS 18, which is effective for the reporting period
beginning on 28 March 2027, subject to UK endorsement, replaces IAS 1
Presentation of Financial Statements.
Key sources of estimation uncertainty
Preparation of the consolidated financial statements in conformity with IFRS
requires that management make certain estimates and assumptions that affect
the measurement of reported revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities.
If in the future such estimates and assumptions, which are based on
management's best estimates at the date of the financial statements, deviate
from actual circumstances, the original estimates and assumptions will be
updated as appropriate in the period in which the circumstances change.
Estimates are continually evaluated and are based on historical experience and
other factors, including expectations of future events that are believed to be
reasonable under the circumstances. The key areas where the estimates and
assumptions applied have a significant risk of causing a material adjustment
to the carrying value of assets and liabilities within the next financial
year are discussed below.
Impairment, or reversals of impairment, of property, plant and equipment and
right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for
impairment or reversals of impairment if events or changes in circumstances
indicate that the carrying amount may not be recoverable. When a review for
impairment is conducted, the recoverable amount of an asset or a cash
generating unit is determined based on value-in-use calculations prepared
using management's best estimates and assumptions at the time. Refer to notes
12 and 13 for further details of retail property, plant and equipment,
right-of-use assets and impairment reviews carried out in the period and for
sensitivities relating to this key source of estimation uncertainty.
Inventory provisioning
The Group purchases, manufactures and sells luxury goods and is subject to
changing consumer demands and fashion trends. The recoverability of the cost
of inventories is assessed every reporting period, by considering the expected
net realisable
value of inventory compared to its carrying value. Where the net realisable
value is lower than the carrying value, a provision is recorded. When
calculating inventory provisions, management considers the nature and
condition of the inventory, as well as applying assumptions in respect of
anticipated saleability of finished goods and future usage of raw materials.
Refer to note 15 for further details of the carrying value of inventory and
inventory provisions and for sensitivities relating to this key source of
estimation uncertainty.
Uncertain tax positions
In common with many multinational companies, the Group faces tax audits in
jurisdictions around the world in relation to intra-group transactions between
associated entities within the Group. These tax audits are often subject to
inter-government negotiations. The matters under discussion are often complex
and can take many years to resolve.
Tax liabilities are recorded based on management's estimate of either the most
likely amount or the expected value amount depending on which method is
expected to better reflect the resolution of the uncertainty. Given the
inherent uncertainty in assessing tax outcomes, the Group could, in future
periods, experience adjustments to these uncertain tax positions that have a
material positive or negative effect on the Group's results for a particular
period.
Refer to note 8 for further details of management estimates surrounding the
outcome of all matters under dispute or negotiation between governments in
relation to current tax liabilities recognised at 29 March 2025, and for
sensitivities relating to this key source of estimation uncertainty.
Key judgements in applying the Group's accounting policies
Judgements are those decisions made when applying accounting policies which
have a significant impact on the amounts recognised in the Group financial
statements. Key judgements that have a significant impact on the amounts
recognised in the Group financial statements for the 52 weeks to 29 March
2025 and the 52 weeks to 30 March 2024 are as follows:
Where the Group is a lessee, judgement is required in determining the lease
term at initial recognition, and throughout the lease term, where extension or
termination options exist. In such instances, all facts and circumstances that
may create an economic incentive to exercise an extension option, or not
exercise a termination option, have been considered to determine the lease
term. Considerations include, but are not limited to, the period assessed by
management when approving initial investment, together with costs associated
with any termination options or extension options. Extension periods (or
periods after termination options) are only included in the lease term if the
lease is reasonably certain to be extended (or not terminated). Where the
lease term has been extended by assuming an extension option will be
recognised, this will result in the initial right-of-use assets and lease
liabilities at inception of the lease being greater than if the option was not
assumed to be exercised. Likewise, assuming a break option will be exercised
will reduce the initial right-of-use assets and lease liabilities.
Refer to note 18 for further details surrounding the judgements regarding the
impact of breaks and options on lease liabilities.
2. Translation of the results of overseas businesses
The results of overseas subsidiaries are translated into the Group's
presentation currency of sterling each month at the average exchange rate for
the month, weighted according to the phasing of the Group's trading results.
The average exchange rate is used, as it is considered to approximate the
actual exchange rates on the date of the transactions. The assets and
liabilities of such undertakings are translated at the closing rates.
Differences arising on the retranslation of the opening net investment in
subsidiary companies, and on the translation of their results, are recognised
in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign
operation are treated as assets and liabilities of the foreign operation and
translated at the closing rate.
The principal exchange rates used were as follows:
Average rate Closing rate
52 weeks to 52 weeks to As at As at
29 March
30 March
29 March
30 March
2025
2024 2025 2024
Euro 1.19 1.16 1.20 1.17
US Dollar 1.28 1.26 1.29 1.26
Chinese Yuan Renminbi 9.21 9.01 9.40 9.13
Hong Kong Dollar 9.98 9.84 10.07 9.89
South Korean Won 1,781 1,657 1,903 1,702
Japanese Yen 194 182 194 191
3. Adjusted profit before taxation
In order to provide additional understanding of the underlying performance of
the Group's ongoing business, the Group's results include a presentation of
adjusted operating profit and adjusted profit before taxation (adjusted PBT).
Adjusted PBT is defined as profit before taxation and before adjusting items.
Adjusting items are those items which, in the opinion of the Directors, should
be excluded in order to provide a consistent and comparable view of
the performance of the Group's ongoing business. Generally, this will
include those items that are largely one-off and/or material in nature, such
as restructuring charges, as well as income or expenses relating to
acquisitions or disposals of businesses or other transactions of a similar
nature, including the impact of changes in fair value of expected future
payments or receipts relating to these transactions. Adjusting items are
identified and presented on a consistent basis each year and a reconciliation
of adjusted PBT to profit before taxation is included in the financial
statements. Adjusting items and their related tax impacts, as well as
adjusting taxation items, are added back to/deducted from profit attributable
to owners of the Company to arrive at adjusted earnings per share. Refer to
note 6 for further details on adjusting items and note 9 for details on
adjusted earnings per share.
4. Segmental analysis
The Chief Operating Decision Maker has been identified as the Board of
Directors. The Board reviews the Group's internal reporting in order to
assess performance and allocate resources. Management has determined the
operating segments based on the reports used by the Board. The Board
considers the Group's business through its two channels to market, being
retail/wholesale and licensing.
Retail/wholesale revenues are generated by the sale of luxury goods through
Burberry full price stores, concessions, outlets and digital commerce as well
as Burberry franchisees, prestige department stores globally and multi-brand
speciality accounts. The flow of global product between retail and wholesale
channels and across our regions is monitored and optimised at a corporate
level and implemented via the Group's inventory hubs and principal
distribution centres situated in Europe, the USA, Mainland China and
Hong Kong S.A.R., China.
Licensing revenues are generated through the receipt of royalties from global
licensees of beauty products and eyewear and from licences relating to the use
of non-Burberry trademarks in Japan.
The Board assesses channel performance based on a measure of adjusted
operating profit. This measurement basis excludes the effects of adjusting
items. The measure of earnings for each operating segment that is reviewed by
the Board includes an allocation of corporate and central costs. Interest
income and charges are not included in the result for each operating segment
that is reviewed by the Board.
Retail/Wholesale Licensing Total
52 weeks to 52 weeks to 52 weeks to 52 weeks to 52 weeks to 52 weeks to
29 March
30 March
29 March
30 March
29 March
30 March
2025
2024
2025
2024
2025
2024
£m
£m
£m
£m
£m
£m
Retail 2,076 2,400 - - 2,076 2,400
Wholesale 319 506 - - 319 506
Licensing - - 67 63 67 63
Total segment revenue 2,395 2,906 67 63 2,462 2,969
Inter-segment revenue(1) - - (1) (1) (1) (1)
Revenue from external customers 2,395 2,906 66 62 2,461 2,968
Depreciation and amortisation(2) (413) (379) - - (413) (379)
Impairment charge of intangible assets (4) - - - (4) -
Impairment charge of property, plant and equipment (10) (5) - - (10) (5)
Impairment charge of (32) (9) - - (32) (9)
right-of-use assets(3)
Net movement in inventory provisions (44) (39) - - (44) (39)
Other non-cash items:
Share-based payments (18) (16) - - (18) (16)
Adjusted operating (loss)/profit (36) 359 62 59 26 418
Adjusting items(4) (29) -
Operating (loss)/profit (3) 418
Finance income 25 31
Finance expense (88) (66)
(Loss)/profit before taxation (66) 383
1. Inter-segment transfers or transactions are entered into under the
normal commercial terms and conditions that would be available to unrelated
third parties.
2. Depreciation of right-of-use assets for the 52 weeks to 29 March 2025
is presented including a charge of £1 million arising as a result of the
Group's restructuring programme (last year: £nil), which is presented as an
adjusting item (refer to note 6).
3. Impairment charge of right-of-use assets for the 52 weeks to 29 March
2025 is presented including £1 million in relation to non-retail right-of-use
assets arising as a result of the Group's restructuring programme (last year:
£nil), which is presented as an adjusting item (refer to note 6).
4. Adjusting items relate to the Retail/Wholesale segment. Refer to note 6
for details of adjusting items.
Retail/Wholesale Licensing Total
52 weeks to 52 weeks to 52 weeks to 52 weeks to 52 weeks to 52 weeks to
29 March
30 March
29 March
30 March
29 March
30 March
2025
2024
2025
2024
2025
2024
£m
£m
£m
£m
£m
£m
Additions to non-current assets 217 399 - - 217 399
Total segment assets 2,164 2,474 8 6 2,172 2,480
Goodwill 114 119
Cash and cash equivalents 813 441
Taxation 328 330
Total assets per Balance Sheet 3,427 3,370
Additional revenue analysis
All revenue is derived from contracts with customers. The Group derives retail
and wholesale revenue from contracts with customers from the transfer of goods
and related services at a point in time. Licensing revenue is derived over the
period the licence agreement gives the customer access to the Group's
trademarks.
Revenue by product 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Accessories 841 1,055
Womenswear 718 860
Menswear 732 842
Childrenswear and other 104 149
Retail/Wholesale 2,395 2,906
Licensing 66 62
Total 2,461 2,968
Revenue by destination 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Asia Pacific 1,043 1,286
EMEIA(1) 842 1,017
Americas 510 603
Retail/Wholesale 2,395 2,906
Licensing 66 62
Total 2,461 2,968
1. EMEIA comprises Europe, Middle East, India and Africa.
Entity-wide disclosures
Revenue derived from external customers in the UK totalled £208 million for
the 52 weeks to 29 March 2025 (last year: £295 million).
Revenue derived from external customers in foreign countries totalled £2,253
million for the 52 weeks to 29 March 2025 (last year: £2,673 million). This
amount includes £447 million of external revenues derived from customers
in the USA (last year: £531 million) and £534 million of external revenues
derived from customers in Mainland China (last year: £648 million).
The total of non-current assets, other than financial instruments, and
deferred tax assets located in the UK is £458 million
(last year: £523 million). The remaining £1,041 million of non-current
assets are located in other countries (last year: £1,168 million), with
£330 million located in the USA (last year: £352 million) and £173 million
located in Mainland China (last year: £200 million).
5. Profit before taxation
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Profit before taxation is stated after charging/(crediting):
Depreciation of property, plant and equipment
Within cost of sales 2 2
Within selling and distribution costs 93 84
Within administrative expenses 17 17
Depreciation of right-of-use assets
Within cost of sales 1 1
Within selling and distribution costs(1) 225 214
Within administrative expenses 21 19
Amortisation of intangible assets
Within selling and distribution costs 1 1
Within administrative expenses 53 41
Net movement in inventory provisions within cost of sales 15 44 39
Loss on disposal of intangible assets - 3
Gain on modification of right-of-use assets (15) (4)
Impairment charge of property, plant and equipment 12 10 5
Impairment charge of right-of-use assets(2) 13 32 9
Impairment charge of intangible assets 11 4 -
Employee costs(3) 576 572
Other lease expense
Property lease variable lease expense 18 92 111
Property lease in holdover expense 18 8 18
Non-property short-term lease expense 18 9 12
Net exchange loss on revaluation of monetary assets and liabilities 16 20
Net gain on derivatives - fair value through profit and loss (21) (7)
Receivables impairment charge 2 4
1. Depreciation of right-of-use assets for the 52 weeks to 29 March 2025
is presented including a charge of £1 million arising as a result of the
Group's restructuring programme (last year: £nil), which is presented as an
adjusting item (refer to note 6).
2. Impairment charge of right-of-use assets for the 52 weeks to 29 March
2025 is presented including £1 million in relation to non-retail right-of-use
assets arising as a result of the Group's restructuring programme (last year:
£nil), which is presented as an adjusting item (refer to note 6).
3. Employee costs for the 52 weeks to 29 March 2025 are presented
including a charge of £16 million arising as a result of the Group's
restructuring programme (last year: £nil), which is presented as an adjusting
item (refer to note 6).
6. Adjusting items
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Total adjusting operating items 29 -
Tax on adjusting items (7) -
Total adjusting items (post-tax) 22 -
Restructuring costs
During the 52 weeks to 29 March 2025, restructuring costs of £29 million
(last year: £nil) were incurred, arising primarily as a result of the
Burberry Forward transformation programme initiated during the period and the
majority of which is expected to conclude by the end of FY 2025/26. The
associated costs, which are recorded within operating expenses, and are
largely cash costs, principally related to redundancies of £16 million,
consultancy costs of £9 million and other restructuring related costs of £4
million. These costs are presented as an adjusting item, in accordance with
the Group's accounting policy, as the anticipated cost of the restructuring
programme is considered material and discrete in nature. A related tax credit
of £7 million (last year: £nil) has also been recognised in the current
year. The cumulative costs, which are largely cash costs, related to the
Burberry Forward transformation programme are expected to total £80 million.
7. Financing
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Finance income - amortised cost 12 9
Finance income - fair value through profit and loss 13 22
Finance income 25 31
Finance expense on lease liabilities 18 (49) (43)
Finance expense on overdrafts (7) (7)
Interest expense on borrowings (25) (4)
Other finance expense (5) (11)
Bank charges (2) (1)
Finance expense (88) (66)
Net finance expense (63) (35)
8. Taxation
Analysis of charge for the year recognised in the Group Income Statement:
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Current tax
UK corporation tax
Current tax on income for the 52 weeks to 29 March 2025 at 25% (last year: 4 104
25%)
Double taxation relief - (3)
Adjustments in respect of prior years(1) (7) 44
(3) 145
Foreign tax
Current tax on income for the year 26 26
Adjustments in respect of prior years(1) 15 (35)
41 (9)
Total current tax 38 136
Deferred tax
UK deferred tax
Origination and reversal of temporary differences (2) 5
Adjustments in respect of prior years(1) 2 (1)
- 4
Foreign deferred tax
Origination and reversal of temporary differences (31) (28)
Adjustments in respect of prior years(1) 2 -
(29) (28)
Total deferred tax (29) (24)
Total tax charge on profit 9 112
1. Adjustments in respect of prior years relate mainly to adjustments to
estimates of prior period tax liabilities and a net increase in provisions for
uncertain tax positions (where in some instances the provision also includes
offsetting relief in a different jurisdiction) and tax accruals.
Analysis of charge for the year recognised in other comprehensive income and
directly in equity:
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Current tax
Recognised in other comprehensive income:
Current tax credit on exchange differences on loans (foreign currency - (1)
translation reserve)
Total current tax recognised in other comprehensive income - (1)
Deferred tax
Recognised in equity:
Deferred tax charge on share options (retained earnings) - 2
Total deferred tax recognised directly in equity - 2
The tax rate applicable on profit varied from the standard rate of corporation
tax in the UK due to the following factors:
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
(Loss)/profit before taxation (66) 383
Tax at 25% (last year: 25%) on profit before taxation (16) 97
Rate adjustments relating to overseas profits (1) -
Permanent differences 8 3
Current year tax losses not recognised 6 3
Prior year temporary differences and tax losses recognised - 1
Adjustments in respect of prior years 12 8
Total taxation charge 9 112
Total taxation recognised in the Group Income Statement arises on the
following items:
Note 52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Tax on adjusted (loss)/profit before taxation 16 112
Tax on adjusting items 6 (7) -
Total taxation charge 9 112
Factors affecting future tax charges
Uncertain tax positions
The Group operates in numerous tax jurisdictions around the world and is
subject to factors that may affect future tax charges including transfer
pricing, tax rate changes, tax legislation changes, tax authority
interpretation, expiry of statutes of limitation, tax litigation, and
resolution of tax audits and disputes.
At any given time, the Group has open years outstanding in various countries
and is involved in tax audits and disputes, some of which may take several
years to resolve. Provisions are based on best estimates and management's
judgements concerning the likely ultimate outcome of any audit or dispute.
Management considers the specific circumstances of each tax position and takes
external advice, where appropriate, to assess the range of potential outcomes
and estimate additional tax that may be due.
At 29 March 2025 the Group recognised provisions of £107 million in respect
of uncertain tax positions (last year: £91 million), being provisions of
£128 million net of expected reimbursements of £21 million (last year: £131
million net of expected reimbursements of £40 million). The majority of these
provisions relate to the tax impact of intra-group transactions between the UK
and the various jurisdictions in which the Group operates, as would be
expected for a group operating internationally.
The Group believes that it has made adequate provision in respect of
additional tax liabilities that may arise from open years, tax audits and
disputes. However, the actual liability for any particular issue may be higher
or lower than the amount provided, resulting in a negative or positive effect
on the tax charge in any given year. A reduction in the tax charge may also
arise for other reasons such as an expiry of the relevant statute of
limitations. Depending on the final outcome of tax audits which are currently
in progress, statute of limitations expiry, and other factors, an impact on
the tax charge could arise. The tax impact of intra-group transactions is a
complex area and resolution of matters can take many years. Given the inherent
uncertainty, it is difficult to predict the timing of when these matters will
be resolved and the quantum of the ultimate resolution. Management estimate
that the outcome across all matters under dispute or in negotiation between
governments could be in the range of a decrease of £38 million, to an
increase of £83 million, in the uncertain tax position over the next 12
months.
Legislative changes
The OECD Pillar Two GloBE Rules introduce a global minimum corporate tax rate
of 15% applicable to multinational enterprise groups with global revenue over
€750 million. All participating OECD members are required to incorporate
these rules into national legislation. The Group is subject to the Pillar Two
Model Rules from FY 2024/25 but does not meet the threshold for application of
the Pillar One transfer pricing rules. The Group applies the temporary
exception from the accounting requirements for deferred taxes in IAS 12.
Accordingly, the Group neither recognises nor discloses information about
deferred tax assets and liabilities related to Pillar Two income taxes.
UK legislation in relation to Pillar Two was substantively enacted on 20 June
2023 and applies to the Group for the reporting period beginning 31 March
2024. The Group has performed an analysis of the potential exposure to Pillar
Two income taxes. The analysis of the potential exposure to Pillar Two income
taxes is based on the most recently submitted Country by Country Reporting
available for the constituent entities in the Group (for the 52 weeks to 29
March 2025). Based on the analysis, the transitional safe harbour relief
should apply in respect of most jurisdictions in which the Group operates.
Although there are a limited number of jurisdictions where the transitional
safe harbour relief may not apply, the Group does not expect a material
exposure to Pillar Two income taxes in those jurisdictions.
9. Earnings per share
The calculation of basic earnings per share is based on profit or loss
attributable to owners of the Company for the year divided by the weighted
average number of ordinary shares in issue during the year. Basic and diluted
earnings per share based on adjusted profit before taxation are also disclosed
to indicate the underlying profitability of the Group.
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Attributable (loss)/profit for the year before adjusting items(1) (53) 270
Effect of adjusting items (after taxation) (1) (22) -
Attributable (loss)/profit for the year (75) 270
1. Refer to note 6 for details of adjusting items.
The weighted average number of ordinary shares represents the weighted average
number of Burberry Group plc ordinary shares in issue throughout the year,
excluding ordinary shares held in the Group's ESOP trusts and treasury shares
held by the Company or its subsidiaries.
Diluted earnings per share is based on the weighted average number of ordinary
shares in issue during the year. In addition, account is taken of any options
and awards made under the employee share incentive schemes, which will have a
dilutive effect when exercised.
52 weeks to 52 weeks to
29 March
30 March
2025
2024
Millions
Millions
Weighted average number of ordinary shares in issue during the year 357.5 365.0
Dilutive effect of the employee share incentive schemes(1) 0.9 1.2
Diluted weighted average number of ordinary shares in issue during the year(1) 358.4 366.2
52 weeks to 52 weeks to
29 March
30 March
2025
2024
Pence
Pence
(Loss)/earnings per share
Basic (20.9) 74.1
Diluted(1) (20.9) 73.9
Adjusted (loss)/earnings per share
Basic (14.8) 74.1
Diluted(1) (14.8) 73.9
1. As the Group incurred an attributable loss for the 52 weeks to 29 March
2025, the effect of employee share incentive schemes was antidilutive and
therefore not included in the calculation of diluted loss per share for the
period.
10. Dividends paid to owners of the Company
52 weeks to 52 weeks to
29 March
30 March
2025
2024
£m
£m
Prior year final dividend paid 42.7p per share (last year: 44.5p) 152 167
Interim dividend paid £nil per share (last year: 18.3p) - 66
Total 152 233
The Directors have elected not to declare an interim or final dividend in
respect of the 52 weeks to 29 March 2025 (last year: 42.7p).
11. Intangible assets
Cost Goodwill Trademarks, licences and other intangible Computer Intangible assets in the course of Total
£m
assets
software
construction
£m
£m
£m
£m
As at 1 April 2023 115 14 248 69 446
Effect of foreign exchange rate changes (6) - (2) - (8)
Additions - 1 8 44 53
Business combination 16 1 - - 17
Disposals - - (5) (22) (27)
Reclassifications from assets in the course of construction - - 30 (30) -
As at 30 March 2024 125 16 279 61 481
Effect of foreign exchange rate changes (5) - (1) - (6)
Additions - - 2 22 24
Disposals - (1) (28) - (29)
Reclassifications from assets in the course of construction - - 61 (61) -
As at 29 March 2025 120 15 313 22 470
Accumulated amortisation and impairment
As at 1 April 2023 6 8 165 19 198
Effect of foreign exchange rate changes - - (2) - (2)
Charge for the year - 1 41 - 42
Disposals - - (5) (19) (24)
As at 30 March 2024 6 9 199 - 214
Effect of foreign exchange rate changes - - (2) - (2)
Charge for the year - 1 53 - 54
Disposals - (1) (28) - (29)
Impairment charge on assets - - 4 - 4
As at 29 March 2025 6 9 226 - 241
Net book value
As at 29 March 2025 114 6 87 22 229
As at 30 March 2024 119 7 80 61 267
Impairment testing of goodwill
The carrying value of the goodwill allocated to cash generating units:
As at As at
29 March
30 March
2025
2024
£m
£m
Mainland China 45 46
South Korea 22 24
Retail and Wholesale segment(1) 34 35
Other 13 14
Total 114 119
1. Goodwill which arose on acquisitions of Burberry Manifattura S.R.L. and
Burberry Tecnica S.R.L. has been allocated to the group of cash generating
units which make up the Group's Retail and Wholesale operating segment cash
generating unit. This reflects the lowest level at which the goodwill is being
monitored by management.
The Group tests goodwill for impairment annually or when there is an
indication that goodwill might be impaired. The recoverable amount of all
cash generating units has been determined on a value-in-use basis.
Value-in-use calculations for each cash generating unit are based on projected
pre-tax discounted cash flows together with a discounted terminal value. The
cash flows have been discounted at pre-tax rates reflecting the Group's
weighted average cost of capital adjusted for country-specific tax rates and
risks. Where the cash generating unit has a non-controlling interest which was
recognised at a value equal to its proportionate interest in the net
identifiable assets of the acquired subsidiary at the acquisition date, the
carrying amount of the goodwill has been grossed up, to include the goodwill
attributable to the non-controlling interest, for the purpose of impairment
testing the goodwill attributable to the cash generating unit. The key
assumptions contained in the value-in-use calculations include the future
revenues, the operating profit margins achieved and the discount rates
applied.
The value-in-use calculations have been prepared using management's cost and
revenue projections for the next three years to 1 April 2028 and a
longer-term growth rate of 5% to 30 March 2030 (last year: 5% to 31 March
2029). A terminal value has been included in the value-in-use calculation
based on the cash flows for the year ending 30 March 2030, incorporating the
assumption that growth beyond 30 March 2030 is equivalent to nominal
inflation rates, assumed to be 2% (last year: 2% beyond 31 March 2029), which
are not significant to the assessment.
The value-in-use estimates indicated that the recoverable amount of the cash
generating unit exceeded the carrying value for each of the cash generating
units. As a result, no impairment has been recognised in respect of the
carrying value of goodwill in the year.
For the material goodwill balances of Mainland China, South Korea and the
Retail and Wholesale segment, management has considered the potential impact
of reasonably possible changes in assumptions on the recoverable amount of
goodwill. The sensitivities include applying a 10% reduction in revenue and
gross profit and the associated impact on operating profit margin from
management's base cash flow projections, considering the macroeconomic and
political uncertainty risk on the Group's retail operations and on the global
economy. Under this scenario, the estimated recoverable amount of goodwill in
Mainland China, South Korea and the Retail and Wholesale segment still
exceeded the carrying value.
The pre-tax discount rates for Mainland China, South Korea and the Retail and
Wholesale segment were 12%, 11% and 12% respectively (last year: Mainland
China 12%, South Korea 10%, and the Retail and Wholesale segment 11%). No
reasonably possible change in these pre-tax discount rates would result in the
carrying value exceeding the estimated recoverable amount of goodwill.
The other goodwill balance of £13 million (last year: £14 million) consists
of amounts relating to eight cash generating units, none of which have
goodwill balances individually exceeding £6 million as at 29 March 2025 (last
year: £6 million).
12. Property, plant and equipment
Cost Freehold land Leasehold improvements Fixtures, Assets in the course of construction Total
and buildings
£m
fittings and
£m
£m
£m
equipment
£m
As at 1 April 2023 121 585 366 76 1,148
Effect of foreign exchange rate changes (2) (27) (8) (3) (40)
Additions - 88 32 44 164
Business combination - - 1 - 1
Disposals - (69) (47) - (116)
Reclassifications from assets in the course of construction - 54 14 (68) -
Reclassifications to assets held for sale (28) - - - (28)
As at 30 March 2024 91 631 358 49 1,129
Effect of foreign exchange rate changes (2) (18) (9) (1) (30)
Additions 2 86 15 20 123
Disposals - (36) (23) - (59)
Reclassifications from assets in the course of construction - 26 21 (47) -
As at 29 March 2025 91 689 362 21 1,163
Accumulated depreciation and impairment
As at 1 April 2023 62 407 303 - 772
Effect of foreign exchange rate changes - (17) (8) - (25)
Charge for the year 2 69 32 - 103
Disposals - (69) (47) - (116)
Impairment charge on assets - 4 1 - 5
Reclassifications to assets held for sale (16) - - - (16)
As at 30 March 2024 48 394 281 - 723
Effect of foreign exchange rate changes (2) (12) (7) - (21)
Charge for the year 2 77 33 - 112
Disposals - (36) (23) - (59)
Impairment charge on assets - 8 2 - 10
As at 29 March 2025 48 431 286 - 765
Net book value
As at 29 March 2025 43 258 76 21 398
As at 30 March 2024 43 237 77 49 406
During the 52 weeks to 29 March 2025, management carried out a review of
retail cash generating units comprising right-of-use asset and property, plant
and equipment, for any indication of impairment or reversal of impairments
previously recorded. Where indications of impairment charges or reversals were
identified, the impairment review compared the value-in-use of the cash
generating units to their net book values at 29 March 2025. The pre-tax cash
flow projections used for this review were based on financial plans of
expected revenues and costs of each retail cash generating unit, approved by
management, reflecting their latest plans over the next three years to 1 April
2028. For the remainder of the asset life, the cash flows assume industry
growth rates of 5% (last year: 5%) and cost inflation rates appropriate to
each store's location, followed by longer-term growth rates of mid-single
digits (last year: mid-single digits) and inflation rates appropriate to each
store's location. The pre-tax discount rates used in these calculations were
between 10.5% and 12.8% (last year: between 10.2% and 12.1%) based on the
Group's weighted average cost of capital adjusted for country-specific
borrowing costs, tax rates and risks for those countries in which a charge was
incurred. Where indicators of impairment have been identified and the
value-in-use was less than the carrying value of the cash generating unit, an
impairment of property, plant and equipment and right-of-use asset was
recorded.
During the 52 weeks to 29 March 2025, a charge of £42 million (last year:
£14 million) was recorded within net operating expenses as a result of the
annual review of impairment for retail store assets. The charge is comprised
of £10 million (last year: £5 million) recorded against property, plant and
equipment and £32 million (last year: £9 million) recorded against
right-of-use assets. Refer to note 13 for further details of right-of-use
assets.
The impairment charge recorded in property, plant and equipment related to 17
retail cash generating units (last year: six retail cash generating units)
for which the total recoverable amount at the balance sheet date is £17
million (last year: £15 million).
Management has considered the potential impact of changes in assumptions on
the impairment recorded against the Group's
retail assets. Given the macroeconomic and political uncertainty risk on the
Group's retail operations and on the global economy, management has considered
sensitivities to the impairment charge as a result of changes to the estimate
of future revenues achieved by the retail stores. The sensitivities applied
are an increase or decrease in revenue of 10% from the estimate used to
determine the impairment charge or reversal. It is estimated that a 10%
decrease/increase in revenue assumptions for the 52 weeks to 28 March 2026,
with no change to subsequent forecast revenue growth rate assumptions, would
result in a £11 million increase/£18 million decrease in the impairment
charge of retail store assets in the 52 weeks to 29 March 2025 (last year:
£19 million increase/ £9 million decrease).
No assets were classified as held for sale at 29 March 2025. During the 52
weeks to 29 March 2025, the Group completed the sale of a freehold property
previously classified as held for sale for £12 million, resulting in a net
gain on disposal of £nil.
13. Right-of-use assets
Net book value Property right- Non-property right- Total right-
of-use assets
of-use assets
of-use assets
£m
£m
£m
As at 1 April 2023 950 - 950
Effect of foreign exchange rate changes (27) - (27)
Additions 162 - 162
Business combination 2 - 2
Remeasurements 169 - 169
Depreciation for the year (234) - (234)
Impairment charge on right-of-use assets (9) - (9)
As at 30 March 2024 1,013 - 1,013
Effect of foreign exchange rate changes (17) - (17)
Additions 65 5 70
Remeasurements 80 - 80
Depreciation for the year (244) (3) (247)
Impairment charge on right-of-use assets (32) - (32)
As at 29 March 2025 865 2 867
As a result of the assessment of retail cash generating units for impairment,
an impairment charge of £31 million (last year: £9 million) was recorded for
impairment of right-of-use assets related to trading impacts. Refer to note 12
for further details of impairment assessment of retail cash generating units.
The impairment charge in the prior year arose from the impairment of
right-of-use assets related to trading impacts.
The impairment charge recorded in right-of-use assets relates to 18 retail
cash generating units (last year: seven retail cash generating units) for
which the total recoverable amount at the balance sheet date is £53 million
(last year: £44 million).
At 29 March 2025, an impairment charge of £1 million was recognised in
relation to non-retail right-of-use assets arising as a result of the Group's
restructuring programme and was presented as an adjusting item (refer to note
6).
As a result, the total impairment charge for right-of-use assets was £32
million (last year: £9 million).
14. Trade and other receivables
As at As at
29 March
30 March
2025
2024
£m
£m
Non-current
Other financial receivables(1) 43 47
Prepayments 5 5
Total non-current trade and other receivables 48 52
Current
Trade receivables 141 189
Provision for expected credit losses (11) (10)
Net trade receivables 130 179
Other financial receivables(1) 32 27
Other non-financial receivables(2) 104 86
Prepayments 28 33
Accrued income 15 15
Total current trade and other receivables 309 340
Total trade and other receivables 357 392
1. Other financial receivables include rental deposits and other sundry
debtors.
2. Other non-financial receivables relates primarily to indirect taxes and
other taxes and duties.
Included in total trade and other receivables are non-financial assets of
£137 million (last year: £124 million).
15. Inventories
As at As at
29 March
30 March
2025
2024
£m
£m
Raw materials 26 29
Work in progress 1 3
Finished goods 397 475
Total inventories 424 507
As at As at
29 March
30 March
2025
2024
£m
£m
Total inventories, gross 527 580
Provisions (103) (73)
Total inventories, net 424 507
Inventory provisions of £103 million (last year: £73 million) are recorded,
representing 19.6% (last year: 12.6%) of the gross value of inventory. The
provisions reflect management's best estimate of the net realisable value of
inventory, where this is considered to be lower than the cost of the
inventory.
The cost of inventories recognised as an expense and included in cost of sales
amounted to £887 million (last year: £922 million).
Taking into account factors impacting the inventory provisioning including the
proportion of inventory sold through loss making channels being higher or
lower than expected, management considers that a reasonable potential range of
outcomes could result in an increase in inventory provisions of £31 million
or a decrease in inventory provisions of £21 million in the next 12 months.
This would result in a potential range of inventory provisions of 15.6% to
25.5% as a percentage of the gross value of inventory as at 29 March 2025.
The net movement in inventory provisions included in cost of sales for the 52
weeks to 29 March 2025 was a charge of £44 million (last year: £39
million). The total reversal of inventory provisions during the current year,
which is included in the net movement, was £8 million (last year: £15
million).
16. Cash and cash equivalents
As at As at
29 March
30 March
2025
2024
£m
£m
Cash and cash equivalents held at amortised cost 174 180
Cash at bank and in hand
Short-term deposits 132 83
306 263
Cash and cash equivalents held at fair value through profit and loss
Short-term deposits 507 178
Total 813 441
Cash and cash equivalents classified as fair value through profit and loss
relate to deposits held in low volatility net asset value money market funds.
The cash is available immediately and, since the funds are managed to achieve
low volatility, no significant change in value is anticipated. The funds are
monitored to ensure there are no significant changes in value.
As at 29 March 2025 and 30 March 2024, no impairment losses were identified on
cash and cash equivalents held at amortised cost.
17. Trade and other payables
As at As at
29 March
30 March
2025
2024
£m
£m
Non-current
Other payables(1) 3 3
Deferred income and non-financial accruals 8 9
Contract liabilities 43 51
Total non-current trade and other payables 54 63
Current
Trade payables 146 180
Other taxes and social security costs 46 45
Other payables(1) 31 21
Accruals 160 165
Deferred income and non-financial accruals 8 11
Contract liabilities 11 12
Deferred consideration(2) 3 5
Total current trade and other payables 405 439
Total trade and other payables 459 502
1. Other payables comprise interest and employee-related liabilities.
2. Deferred consideration relates to the acquisition of the economic right
to the non-controlling interest in Burberry Middle East LLC on 22 April 2016.
In the 52 weeks
to 29 March 2025, payments of £2 million were made in relation to Burberry
Middle East LLC (last year: no payments). Contingent payments of £3 million
remain outstanding at 29 March 2025, which will be paid once all required
documentation is complete.
Included in total trade and other payables are non-financial liabilities of
£116 million (last year: £128 million).
18. Lease liabilities
Property lease liabilities Non-Property lease liabilities Total lease liabilities
£m
£m
£m
Balance as at 1 April 2023 1,123 - 1,123
Effect of foreign exchange rate changes (30) - (30)
Created during the year 159 - 159
Business combination 1 - 1
Amounts paid(1) (274) - (274)
Discount unwind 43 - 43
Remeasurements(2) 166 - 166
Balance as at 30 March 2024 1,188 - 1,188
Effect of foreign exchange rate changes (18) - (18)
Created during the year 65 5 70
Amounts paid(1) (283) (3) (286)
Discount unwind 49 - 49
Remeasurements(2) 78 - 78
Balance as at 29 March 2025 1,079 2 1,081
As at As at
29 March
30 March
2025
2024
£m
£m
Analysis of total lease liabilities:
Non-current 866 959
Current 215 229
Total 1,081 1,188
1. The amount paid of £286 million (last year: £274 million) includes
£237 million (last year: £231 million), including £5 million paid on
termination of lease, representing a financing cash outflow and £49 million
(last year: £43 million) representing an operating cash outflow.
2. Remeasurements relate largely to changes in the lease liabilities that
arise as a result of extending the lease term on an existing lease,
management's reassessment of the lease term based on existing break or
extension options in the contract, as well as those linked to an inflation
index or rate review.
The Group enters into property leases for retail properties, including stores,
concessions, warehouse and storage locations and office property. The
remaining lease terms for these properties range from a few months to 15 years
(last year: a few months to 16 years). Many of the leases include break
options and/or extension options to provide operational flexibility. Some of
the leases for concessions have rolling lease terms or rolling break options.
Management assess the lease term at inception based on the facts and
circumstances applicable to each property including the period over which the
investment appraisal was initially considered.
Potential future undiscounted lease payments related to periods following the
exercise date of an extension option not included in the lease term, and
therefore not included in lease liabilities, are approximately £360 million
(last year: £434 million) in relation to the next available extension option
and are assessed as not reasonably certain to be exercised. Potential future
undiscounted lease payments related to periods following the exercise date of
a break option not included in the lease term, and therefore not included in
lease liabilities, are approximately £73 million (last year: £113 million)
in relation to break options which are expected to be exercised. During the
52 weeks to 29 March 2025, no significant judgements regarding breaks and
options in relation to individually material leases were made (last year:
£100 million in undiscounted future cash flows not being included in the
initial right-of-use assets and lease liabilities).
Management reviews the retail lease portfolio on an ongoing basis, taking into
account retail performance and future trading expectations. Management may
exercise extension options and negotiate lease extensions or modifications.
In other instances, management may exercise break options, negotiate lease
reductions or decide not to negotiate a lease extension at the end of the
lease term. The most significant factor impacting future lease payments is
changes management choose to make to the store portfolio.
Future increases and decreases in rent linked to an inflation index or rate
review are not included in the lease liability until the change in cash flows
is legally agreed. Approximately 20% (last year: 19%) of the Group's lease
liabilities are subject to inflation linked reviews and 31% (last year: 32%)
are subject to rent reviews. Rental changes linked to inflation or rent
reviews typically occur on an annual basis.
Many of the retail property leases also incur payments based on a percentage
of revenue achieved at the location. Changes in future variable lease payments
will typically reflect changes in the Group's retail revenues, including the
impact of regional mix. The Group expects the relative proportions of fixed
and variable lease payments to remain broadly consistent in future years.
The Group also enters into non-property leases for equipment, advertising
fixtures and machinery. Generally, these leases do not include break or
extension options. The most significant impact to future cash flows relating
to leased equipment, which are primarily short-term leases, would be the
Group's usage of leased equipment to a greater or lesser extent.
Details of Income Statement charges and income from leases are set out in note
5. The right-of-use asset categories on which depreciation is incurred are
presented in note 13. Interest expense incurred on lease liabilities is
presented in note 7.
Total cash outflows in relation to leases in the 52 weeks to 29 March 2025 are
£394 million (last year: £417 million). This relates to payments of £237
million on lease principal (last year: £231 million), £49 million on lease
interest (last year: £43 million), £91 million on variable lease payments
(last year: £113 million), and £17 million on other lease payments
principally relating to short-term leases and leases in holdover (last year:
£30 million).
19. Borrowings
As at 29 March 2025 As at 30 March 2024
Maturity Carrying value Fair value Carrying value Fair value
£m
£m
£m
£m
Bank overdrafts(1) - 105 105 79 79
1.125% £300m MTN Sustainability-linked bond(2) Sep 2025 300 294 299 281
5.75% £450m MTN Fixed rate bond(3) Jun 2030 438 443 - -
Total 843 842 378 360
1. Bank overdrafts includes £105 million (last year: £78 million)
representing balances on cash pooling arrangements in the Group, as well as
£nil (last year: £1 million) relating to a number of committed and
uncommitted arrangements agreed with third parties. The fair value of
overdrafts approximates the carrying amount due to the short maturity of these
instruments.
2. Proceeds from the sustainability bond have been used by the Group to
finance projects which support the Group's sustainability agenda. All
movements on the bond were non cash. There are no financial penalties for not
using the proceeds as anticipated. Interest on the sustainability bond is
payable semi-annually.
3. The proceeds from the bond were £439 million. All other movements on
the bond were non cash. The Group has entered into interest rate swaps to
reduce the level of fixed rate debt in accordance with the Group Treasury
Policy, and has entered the swaps into fair value hedge relationships with the
bond. Interest on the bond is payable semi-annually.
The Group has a £300 million multi-currency revolving credit facility (RCF)
with a syndicate of banks, maturing in November 2027.
During the year, the Group entered into a £75 million multi-currency RCF with
a syndicate of banks, maturing in March 2027. The agreement contains an option
which will allow the Group to extend for an additional one year which is
exercisable in 2026, at the consent of the syndicate.
There were no drawdowns or repayments of the RCFs during the current or prior
year, and at 29 March 2025 there were no outstanding drawings.
The Group is in compliance with the financial and other covenants within the
facilities above and has been in compliance throughout the financial period.
20. Share capital and reserves
Allotted, called up and fully paid share capital Number £m
Ordinary shares of 0.05p (last year: 0.05p) each
As at 1 April 2023 384,267,928 0.2
Allotted on exercise of options during the year 51,904 -
Cancellation of shares (20,504,089) -
As at 30 March 2024 363,815,743 0.2
Allotted on exercise of options during the year 571 -
As at 29 March 2025 363,816,314 0.2
The Company has a general authority from shareholders, renewed at each Annual
General Meeting, to repurchase a maximum of 10% of its issued share capital.
There has been no share buy-back programme in the current period.
During the prior 52 weeks to 30 March 2024, the Company entered into
agreements to purchase, at fair value, a total of £400 million of its own
shares, excluding stamp duty and fees, through two share buy-back programmes
of £200 million each. Both programmes completed during the prior year.
The cost of own shares purchased by the Company, as part of a share buy-back
programme, is offset against retained earnings, as the amounts paid reduce the
profits available for distribution by the Company. When shares are cancelled,
a transfer is made from retained earnings to the capital reserve, equivalent
to the nominal value of the shares purchased, and subsequently cancelled.
In the 52 weeks to 29 March 2025, no shares were cancelled (last year: 20.5
million).
As at 29 March 2025, the Company held 4.6 million treasury shares (last year:
5.2 million), with a market value of £37 million (last year: £63 million)
based on the share price at the reporting date. The treasury shares held by
the Company are related to the share buy-back programme completed during the
52 weeks to 2 April 2022. During the 52 weeks to 29 March 2025, 0.6 million
treasury shares were transferred to ESOP trusts (last year: 0.9 million).
During the 52 weeks to 29 March 2025, no treasury shares were cancelled (last
year: none).
The cost of shares purchased by ESOP trusts are offset against retained
earnings, as the amounts paid reduce the profits available for distribution by
the Company. As at 29 March 2025, the cost of own shares held by ESOP trusts
and offset against retained earnings is £29 million (last year: £34
million). As at 29 March 2025, the ESOP trusts held 1.7 million shares (last
year: 1.9 million) in the Company, with a market value of £14 million (last
year: £23 million). In the 52 weeks to 29 March 2025, the ESOP trusts and
the Company have waived their entitlement to dividends.
Other reserves in the Statement of Changes in Equity consist of the capital
reserve, the foreign currency translation reserve, and the hedging reserves.
The hedging reserves consist of the cash flow hedge reserve and the net
investment hedge reserve.
Capital Hedging reserves Foreign currency translation Total
reserve
reserve
£m
£m
£m
Cash flow Net investment hedge
hedges
£m
£m
Balance as at 1 April 2023 41 (1) 5 232 277
Other comprehensive income:
Cash flow hedges - losses deferred in equity - (4) - - (4)
Cash flow hedges - transferred to income - 1 - - 1
Foreign currency translation differences - - - (34) (34)
Tax on other comprehensive income - 1 - - 1
Total comprehensive income for the year - (2) - (34) (36)
Balance as at 30 March 2024 41 (3) 5 198 241
Other comprehensive income:
Cash flow hedges - losses deferred in equity - (1) - - (1)
Cash flow hedges - transferred to income - 2 - - 2
Foreign currency translation differences - - - (25) (25)
Total comprehensive income for the year - 1 - (25) (24)
Balance as at 29 March 2025 41 (2) 5 173 217
As at 29 March 2025, the amount held in the hedging reserve relating to
matured net investment hedges is £5 million net of tax (last year: £5
million).
21. Commitments
Capital commitments
Contracted capital commitments represent contracts entered into by the year
end for future work in respect of major capital expenditure projects relating
to property, plant and equipment and intangible assets, which are not
recorded on the Group's Balance Sheet and are as follows:
As at As at
29 March
30 March
2025
2024
£m
£m
Capital commitments contracted but not provided for:
Property, plant and equipment 16 67
Intangible assets 2 4
Total 18 71
22. Contingent liabilities
The Group is subject to claims against it and to tax audits in a number of
jurisdictions which arise in the ordinary course of business. These typically
relate to Value Added Taxes, sales taxes, customs duties, corporate taxes,
transfer pricing, payroll taxes, various contractual claims, legal proceedings
and other matters. Where appropriate, the estimated cost of known obligations
has been provided in these financial statements in accordance with the Group's
accounting policies. The Group does not expect the outcome of current similar
contingent liabilities to have a material effect on the Group's financial
position.
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