"Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results. Our focus in this next phase is on growth and acceleration. We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team. I am confident in our ability to deliver our medium-term targets and realize our potential as the modern British luxury brand. I am excited about what we can achieve in pursuit of our long-term ambition to reach 5 billion British pounds in revenue", commented Jonathan Akeroyd, Chief Executive Officer

First Half Results

In the first half of fiscal 2023, Burberry's revenue reached 1.35 billion British pounds (1.55 billion euros), increasing by 11% as reported, and by 5% at constant exchange rates, on a comparable basis to the same period of last fiscal year.

Total comparable store sales grew by 5% in this period, with a 1% and 11% growth in the first and second quarters, respectively, as compared to the first half of fiscal 2022, amounting to 1.06 billion British pounds (1.22 billion euros). Wholesale sales rose by 6% as reported, and by 1% at constant exchange rates, year-over-year, totalling 263 million British pounds (302.5 billion euros).  

In the Asia Pacific region, comparable store sales declined by 4% in the first half of the current fiscal year, mainly due to the performance recorded in Mainland China, where sales decreased by 19% in this period, following the 35% drop in the first quarter. In the EMEIA*, in turn, comparable store sales rose by 34% in the first six months of the year (sales were up by 47% in the first quarter, recovering from last year’s lockdowns, and by 25% in the second quarter, against a period with more stores open in the prior year). Comparable store sales were also down in the Americas region (by 3%).

Burberry reported having maintained the focus on the core leather and outerwear categories, "with both showing a good performance in the half excluding the impact of the Mainland China lockdowns". In the first half of fiscal 2023, outerwear comparable store sales increased by 18% excluding Mainland China (by 3% including), and leather goods comparable store sales were up by 11% (including Mainland China), as compared to a same period of fiscal 2022.

In the first half of fiscal 2023, the luxury group's attributable profit was 193 million British pounds, as compared to 145 million British pounds in the similar period of the previous year.

Outlook

Burberry has reiterated its near-term guidance, "while mindful of the challenging macro environment and its potential impact on trading, particularly COVID-19 related disruptions in Mainland China and recessionary risks in Europe and the Americas". Additionally, it has established a new-medium target to increase sales to 4 billion British pounds at constant exchange rates.