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.


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