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Burberry’s H1 revenues increase, maintains outlook

By Prachi Singh

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Image: Courtesy of Burberry/TORSO

Revenue at Burberry plc of 1,345 million pounds increased 5 percent CER and 11 percent reported for the six months ending October 1, 2022.

The company’s retail comparable store sales rose 5 percent; while wholesale increased 1 percent CER and 6 percent reported.

"Our focus in this next phase is on growth and acceleration. I am excited about what we can achieve in pursuit of our long-term ambition to reach 5 billion pounds in revenue." Jonathan Akeroyd, Burberry’s chief executive officer in a statement,

Highlights of Burberry’s first half results

The company said, adjusted operating profit for the period under review of 238 million pounds, was up 6 percent CER and 21 percent reported.

Adjusted gross margin of 70.1 percent was flat at CER and up 80 bps at reported rates, while adjusted operating profit margin of 16.3 percent at CER was up 10 bps and 17.7 percent at reported rates increased 150 bps.

The company reported adjusted diluted EPS of 44.3p, up 15 percent at CER and 32 percent reported, while diluted EPS of 48.9p, rose 37 percent reported.

Burberry’s board of directors has announced an interim dividend per share of 16.5p compared to 11.6p in the previous year.

The company’s new medium-term target projects sales growth to 4 billion pounds at CER, sustaining high-single digit growth with operating leverage ensuring good margin progression.

Burberry posts positive momentum across core categories

Burberry’s leather goods sales saw good momentum with comparable sales increasing 15 percent in the second quarter and 11 percent in the first six months driven by handbags with the Lola and helped by the introduction of the Frances shape for AW22.

Outerwear comparable sales grew 3 percent in the first half period with growth impacted by lockdowns in Mainland China. The performance outside of Mainland China saw 18 percent growth, with a strong performance across both men's and women's collections.

During the first six months, Burberry opened or renovated 22 stores including Bal Harbour in Miami and Taipei 101. The company remains on track to open or refurbish 65 stores in the new concept this year, in addition to the 47 stores from FY22.

In August, Burberry became the first luxury fashion brand and one of the first companies globally to receive approval from the Science Based Targets initiative (SBTi) for its net-zero emissions target.

Burberry