REG - Burberry Group PLC - First Quarter Trading Update

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RNS Number : 5619R  Burberry Group PLC  18 July 2025

18 July 2025

BURBERRY GROUP PLC

FIRST QUARTER TRADING UPDATE

 

"Over the past year, we have moved from stabilising the business to driving
Burberry Forward with confidence. The improvement in our first quarter
comparable sales, strength in our core categories, and uptick in brand
desirability gives us conviction in the path ahead. Our Autumn 2025 collection
is being well received by a broad range of luxury customers as it arrives in
stores. Although the external environment remains challenging and we are still
in the early stages of our transformation, we are encouraged by the initial
progress we are starting to see."

- Joshua Schulman, Chief Executive Officer

RETAIL REVENUE 13 WEEKS ENDED 28 JUNE 2025

                          28 June  29 June  % change
 £ million                2025     2024     Reported FX  CER*
 Retail revenue           433      458      -6%          -2%
 Comparable store sales*  -1%      -21%
 Contribution from space  -1%      +1%

*See page 3 for definition

Comparable store sales by region

 Q1 FY26 vs LY           EMEIA  Americas  Greater China(1)  Asia Pacific(2)
 Comparable store sales  +1%    +4%       -5%               -4%

In FY26 we have realigned our regions as follows:

1. Greater China consists of Mainland China; Hong Kong S.A.R, China; Macau
S.A.R, China; and Taiwan Area, China.

2. Asia Pacific consists of the rest of Asia; including Japan, South Korea,
Southeast Asia, Australia and New Zealand.

 

In the first quarter, we implemented the following actions to drive Burberry
Forward, resulting in comparable retail sales improvement across all regions
relative to the previous quarter. This was supported by stronger brand
desirability, outperformance in outerwear and scarves and improved conversion.

·    Timeless British Luxury brand expression amplified through a series of
distinctive monthly campaigns-High Summer, Highgrove, and Festival-each
celebrating British summertime traditions while appealing to different
customer archetypes

·      Rebalanced Autumn 25 collection-our first under the Burberry
Forward era-attracting a broad range of luxury customers, focused on fewer,
bigger ideas, hero-ing recognisable brand codes

·      Visual merchandising enhanced in stores with fixtures to improve
product densities; scarf bar pilot outperforming fleet with 200 targeted by
year end

·      Online momentum continued for the third consecutive quarter driven
by stronger product mix, universal styling and storytelling

·      Organisational changes fostering greater collaboration and agility;
cost efficiency programme on track to deliver £80 million in annualised
savings by FY26.

FY26 OUTLOOK

We are still in the early stages of our turnaround, and the macroeconomic
environment remains uncertain.

Our focus this year is to build on the early progress we have made in
reigniting brand desire, as a key requisite to growing the topline. In the
first half we are continuing to prioritise investment and expect to see the
impact of our initiatives build as the year progresses. We will deliver margin
improvement with a continued focus on simplification, productivity and cash
flow.

We remain confident that we are positioning the business for a return to
sustainable, profitable growth.

RETAIL SALES PERFORMANCE

Q1 FY26 comparable store sales declined 1% in the period. Space was a 1%
headwind, leading to a 2% decline in retail sales at constant exchange rates.
Currency was a 4% headwind in the quarter, with retail revenue landing at
£433m, down 6% at reported exchange rates.

Comparable retail sales improved sequentially in all regions:

·      EMEIA grew 1%, boosted by local spend offsetting declines from
tourists.

·      Americas grew 4%, supported by new customer growth.

·      Greater China decreased 5% with Mainland China -4%.

·      Asia Pacific was down 4% with challenging performance in Japan,
partially offset by growth in South Korea.

 

The financial information contained herein is unaudited

 

All metrics and commentary in this presentation are at reported FX and exclude
adjusting items unless stated otherwise.

Constant exchange rates (CER) removes the effect of changes in exchange rates.
The constant exchange rate incorporates both the impact of the movement in
exchange rates on the translation of overseas subsidiaries' results and on
foreign currency procurement and sales through the Group's UK supply chain.

 

Comparable store sales are the year-on-year change in sales from stores
trading over equivalent time 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 a comparison of equivalent store performance against
the prior period.

 

Certain financial data within this announcement have been rounded. Growth
rates and ratios are calculated on unrounded numbers.

 

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 9.00am (UK time) for
investors and analysts. It can be viewed live on the Burberry website
https://www.burberryplc.com/ (https://www.burberryplc.com/) , you can also
click here
(https://connectstudio-portal.world-television.com/en/684a8aaef927741b5ec6249a)
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 Interim Results for the 26 weeks ending
27 September 2025 on Thursday 13 November 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.

 

www.burberryplc.com

LinkedIn: Burberry

 

Notes to editors

·          Burberry is a British luxury brand, headquartered in London

·       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.

·          At 28 June 2025, globally Burberry had 227 retail stores,
137 concessions, 54 outlets and 31 franchise stores, excluding pop-up stores.

 

 

APPENDIX

 

Based on effective FX rates as of 27 June 2025, in FY26 we now expect a
headwind of around £85m on revenue and around £15m on adjusted operating
profit.

 

 EXCHANGE RATES      FORECAST EFFECTIVE AVERAGE      ACTUAL AVERAGE EXCHANGE RATES

                     RATES FOR FY26
 £1=                 27 June 2025    2 May 2025      FY25
 Euro                1.17            1.17            1.19
 US Dollar           1.36            1.33            1.28
 Chinese Renminbi    9.78            9.65            9.21
 Hong Kong Dollar    10.69           10.28           9.98
 Korean Won          1,867           1,861           1,781
 Japanese Yen        197             192             194

 

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 around 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 27 June 2025 spot rates, the impact of year-on-year exchange rate
                                     movements is expected to be a c.£85m headwind on revenue and c.£15m headwind
                                     on adjusted operating profit.
 Capex                               Capex is expected to be around £130m.

Note: Guidance based on CER at FY25 rates

 

 

 

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