London · Delayed Price · Currency is GBP · Price in GBX Burberry Group Earnings Call Transcripts
Fiscal Year 2027
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Comparable retail sales rose 5% year-over-year, led by double-digit growth in the Americas and Greater China, with all product divisions returning to growth. Gross margin expansion and revenue growth are expected for the full year, supported by strong e-commerce and wholesale momentum.
Fiscal Year 2026
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Sequential sales momentum and double-digit Q4 growth in Greater China and the Americas drove improved gross margin and operating profit, with strong cash flow and reduced leverage. FY 2027 guidance targets further revenue and margin expansion amid macro uncertainty.
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Comparable retail sales rose 3% year-over-year in Q3, led by strong growth in Asia Pacific and improved margins from reduced markdowns. Outerwear, scarves, and handbags outperformed, with continued investment in marketing and brand activations supporting long-term growth.
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Sequential improvement in customer growth and a return to retail comp sales growth in Q2 marked the first positive momentum in two years. Gross margin improved significantly, inventory was tightly managed, and guidance remains unchanged despite macro uncertainty.
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Q1 saw a 1% decline in comparable retail sales and a 6% drop in reported revenue, with sequential improvement across all regions. Brand initiatives and new collections drove higher sell-through and increased brand desirability, while margin improvement and cost savings are expected to be H2 weighted.
Fiscal Year 2025
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Revenue reached £2.46 billion with improved second-half performance and adjusted operating profit of £26 million. Cost savings, inventory reduction, and brand revitalization initiatives are underway, with FY26 expected to be a year of stabilization and margin improvement.
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Q3 saw a 4% decline in comparable store sales but sequential improvement across all regions, driven by strong performance in scarves and outerwear, effective marketing, and inventory actions. The outlook for FY2025 remains unchanged, with continued focus on core categories, productivity, and brand desirability.
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H1 saw a 20% drop in comparable retail sales and a GBP 41 million adjusted operating loss, with gross margin down 640 bps. Strategic actions focus on inventory reduction, cost control, and brand revitalization to restore growth and profitability.
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Q1 FY25 saw a 21% drop in comparable store sales amid a global luxury slowdown, with all regions except Japan declining. FY25 profit is expected below consensus, dividend payments are suspended, and a new CEO is appointed, but no major strategic shift is planned.