Burberry share price: Group issues second-half trading update

on Apr 19, 2017
Updated: Oct 21, 2019

Burberry (LON:BRBY) has updated investors on its second-half performance this morning.

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**Highlights from the company statement:**
· Retail revenue £1,268m, up 3% underlying (up 19% at reported FX)
– Comparable sales up 3% (Q3 up 3%; Q4 up 2%)
o Strength in Mainland China drove growth in Asia Pacific
o Double-digit growth in EMEIA led by exceptional performance in the UK
o Decline in the Americas impacted by the challenging environment
– Accessories outperformed, with mid-teens percentage growth in leather goods

· Wholesale revenue £327m, down 13% underlying (down 1% at reported FX), in line with guidance, with over half the decline coming from a rationalisation of distribution in key markets and distributor de-stocking in Beauty

· Licensing revenue £12m, down 38% underlying, in line with guidance, primarily reflecting the planned expiry of the Japanese licences

· Total revenue £1,607m, down 1% underlying (up 14% at reported FX), with performance reflecting the implementation of strategic priorities and actions to improve brand positioning, notably in the US and in Beauty

· Announced strategic partnership in Beauty with Coty, subject to regulatory approvals

· Good operational and strategic progress
– Brand: The February show generated record online reach and engagement and the number of visitors to Makers House increased 50% compared with September
– Product focus: Strong commercial reaction to February collection, fashion outperformed with innovation in outerwear, including launch of tropical gabardine
– Productive space: Mainline conversion improved globally
– E-commerce leadership: Digital continued to outperform, led by mobile
– Operational excellence and Inspired people: Simplifying our structure and processes; on track to deliver planned cost savings of £20m in FY 2017 increasing to at least £100m annualised in FY 2019

· Completed £100m of announced £150m share buyback programme

Christopher Bailey, Chief Creative and Executive Officer, commented:

“In an uncertain environment, we continue to take action to strengthen the brand and reposition Burberry for growth. The outperformance of fashion and the strong customer response to new products underline our renewed creative momentum. I am delighted that Marco and Julie have now joined the business. While we have more to do, as we build on our progress so far, we remain confident about Burberry’s prospects in the longer term.”
As of 07:11 BST, Wednesday, 19 April, Burberry Group plc share price is 1,746.54p.


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