London · Delayed Price · Currency is GBP · Price in GBX Burberry Group Earnings Call Transcripts
Fiscal Year 2026
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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 brand desirability led to the first positive retail comp sales in two years, with gross margin up 410 bps and adjusted operating profit at £19 million. Guidance remains unchanged, with continued investment in marketing and product innovation.
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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 £26 million adjusted operating profit. Inventory and cost actions supported cash flow, while a new strategy and expanded cost savings aim for stabilization and margin improvement in FY2026.
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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.