Burberry’s revenue for FY24 remained flat at CER and declined 4 percent reported to 2,968 million pounds, while comparable store sales were down 1 percent offset by a challenging second half year performance, down 8 percent.

Adjusted operating profit fell 25 percent CER and 34 percent reported, while adjusted profit before tax was 383 million pounds compared to 613 million pounds in FY23.

In the context of a still uncertain external environment, Burberry expects H1 to remain challenging. Wholesale revenue is estimated to fall by around 25 percent in the first half with increased control of distribution.

“Executing our plan against a backdrop of slowing luxury demand has been challenging. While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements,” said Jonathan Akeroyd, Burberry’s chief executive officer in a statement.

Burberry results impacted by slowing luxury demand

The company said Asia Pacific comparable store sales grew 3 percent in FY24, while the fourth quarter fell 17 percent. Mainland China increased 2 percent in the year and fell 19 percent in the fourth quarter. The Mainland Chinese customer group fell 12 percent in the quarter, with tourism accounting for almost a quarter of the customer group sales globally South Korea declined 8 percent in the year and 17 percent in the fourth quarter with the customer group down 12 percent.

Japan saw strong growth of 25 percent in the year and 18 percent in the fourth quarter supported by tourist spending which more than doubled, accounting for half of the region's sales in the quarter. South Asia Pacific rose 4 percent in the year, while the fourth quarter fell 24 percent.

EMEIA comparable store sales rose 4 percent in FY24 but declined 3 percent in the fourth quarter. Americas comparable store sales fell 12 percent in both the year and in the fourth quarter.

Burberry's wholesale sales decline

Burberry witnessed a strong performance from outerwear that grew by a high single digit percentage in the year, led by Heritage rainwear. Scarves grew by a double digit percentage, leather goods performed broadly in line with the group average and ready-to-wear for both men and women were below the group average, declining by a mid-single digit percentage in the year.

Wholesale revenue declined 5 percent at CER and 7 percent at reported rates due to pressure in the Americas, while licensing revenue grew 23 percent at both CER and reported exchange rates.