Burberry, the renowned luxury fashion brand, saw its profits dwindle by 44% to £271 million ($342 million) in the fiscal year 2024 (FY24), down from £492 million in FY23.
In FY24, the retailer experienced a significant 40% drop in its profit before taxation (PBT), falling to £383 million from £634 million in FY23.
The retailer saw a 36% decrease in its reported operating profit, dropping to £418 million in FY24 from £657 million the previous year. Additionally, its adjusted reported operating profit fell by 34% to £418 million at the reported rate in FY24, down from £634 million in FY23.
For the period ending on March 30, 2024, Burberry disclosed revenue of £2.96 billion, marking a 4% decline at the reported rate compared to £3.09 billion in FY23.
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Comparable store sales for the fiscal year experienced a 1% decrease, characterized by a robust 10% rise in the first half, which was mitigated by an 8% decline in the latter half.
In FY24, the retailer’s basic earnings per share (EPS) stood at 74.1 pence, while the diluted EPS was 73.9 pence. This contrasts with FY23 figures of 126.9 pence for basic EPS and 126.3 pence for diluted EPS.
During the latest fiscal year, more than half of Burberry’s stores were either newly opened or refurbished, strengthening its distribution network.
As of March 30, 2024, Burberry operated 422 directly managed stores alongside 33 franchise stores.
Jonathan Akeroyd, Burberry’s CEO, remarked, “Navigating our strategy amid a slowdown in luxury demand has posed challenges. Despite our FY24 financial results falling short of initial projections, we’ve advanced in reshaping our brand identity, refining our product offerings, and enhancing distribution, all while implementing operational enhancements.”
“We’re leveraging insights gained over the past year to refine our strategy, while remaining adaptable to external circumstances. We maintain confidence in our approach to unlock Burberry’s potential as a contemporary British luxury brand and in our capability to navigate this phase successfully.”
Based on foreign exchange rates as of April 25, 2024, Burberry forecasts a currency headwind of £30 million to revenue and £20 million to adjusted operating profit in FY25.
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