The adjusted operating profit stood at £418 million, down 34 per cent from £634 million the previous year, with the adjusted operating profit margin decreasing by 640 basis points (bps) to 14.1 per cent. On a CER basis, the adjusted operating profit margin declined by 500 bps. The adjusted diluted earnings per share (EPS) dropped to 73.9 pence from 122.5 pence, a 40 per cent decrease at reported FX rates and a 30 per cent decrease at CER, the company said in a press release.
Burberry Group reported FY24 revenue of £2.96 billion, down 4 per cent YoY at reported FX rates.
Adjusted operating profit fell 34 per cent to £418 million.
The company’s retail comparable store sales dropped 1 per cent, with Q4 down 12 per cent.
Asia Pacific sales rose 3 per cent annually but fell 17 per cent in Q4.
Americas sales fell 12 per cent.
Reported operating profit fell by 36 per cent to £418 million, with the operating profit margin declining by 710 bps to 14.1 per cent. Reported diluted EPS also decreased to 73.9 pence from 126.3 pence, a 41 per cent drop.
Comparable store sales by region showed varying results. Overall, comparable store sales decreased by 1 per cent for FY24, with a 12 per cent decline in the fourth quarter (Q4). Sales in the Asia Pacific region increased by 3 per cent for the full year but declined by 17 per cent in Q4. In the Europe, Middle East, India, and Africa (EMEIA) region, sales rose by 4 per cent for FY24, with a 3 per cent decrease in Q4. The Americas saw sales fall by 12 per cent for both the full year and Q4.
Wholesale revenue declined by 5 per cent at CER and by 7 per cent at reported rates, primarily due to pressure in the Americas. In contrast, licensing revenue grew by 23 per cent at both CER and reported exchange rates.
“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. We are using what we have learned over the past year to finetune our approach, while adapting to the external environment,” said Jonathan Akeroyd, chief executive officer.
Fibre2Fashion News Desk (DP)