Burberry: H1 sales and profits at half-mast
(CercleFinance.com) - Burberry reported sales of £1,086m for H1 to end-September, reflecting a 22% drop in activity (-20% at constant exchange rates).
At the same time, the company recorded adjusted operating income of -£41m, a far cry from the £223m recorded a year earlier, with the margin falling from +15.9% to -3.8%.
As a result, adjusted EPS was -18.3 pence for the period, compared with +42.1 pence twelve months earlier.
However, FCF rose sharply from -£15m to +£184m.
Our recent underperformance was due to a number of factors, including inconsistent brand execution and a lack of focus on our core outerwear category and key customer segments. Today, we are acting with urgency to correct course, stabilize the business and position Burberry for a return to sustainable, profitable growth, management reacted.
We recognize that there is much to do in the near future and are confident that we can return to generating £3bn in annual revenues over time, while rebuilding margins and generating strong cash generation, the company added.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
At the same time, the company recorded adjusted operating income of -£41m, a far cry from the £223m recorded a year earlier, with the margin falling from +15.9% to -3.8%.
As a result, adjusted EPS was -18.3 pence for the period, compared with +42.1 pence twelve months earlier.
However, FCF rose sharply from -£15m to +£184m.
Our recent underperformance was due to a number of factors, including inconsistent brand execution and a lack of focus on our core outerwear category and key customer segments. Today, we are acting with urgency to correct course, stabilize the business and position Burberry for a return to sustainable, profitable growth, management reacted.
We recognize that there is much to do in the near future and are confident that we can return to generating £3bn in annual revenues over time, while rebuilding margins and generating strong cash generation, the company added.
Copyright (c) 2024 CercleFinance.com. All rights reserved.