Burberry revenue up 2% in FY19, sees digital growth

“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations. Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for FY20,” Marco Gobbetti, chief executive officer.

In the retail segment, the UK delivered mid-single digit percentage growth, benefiting from improved tourist spending in the second half. Continental Europe grew low single digit and the Middle East declined, impacted by the macro-environment. Americas saw low single digit percentage growth. The US grew by a low single digit percentage with the second half negatively impacted by softer local footfall trends.

"We anticipate a more pronounced weighting of operating profit in H2 2020 relative to H1 than in the prior year. This results in a decline in H1 2020 at CER largely due to the strong comparator in the prior year. We expect growth to be re-established in H2 as Riccardo’s collections build through the year. As planned, during the year, we will focus on managing through our creative transition and continuing to align our distribution network to our new vision. We started these activities in FY 2019, but they will step up in FY 2020," Burberry saidin a press release.

As previously announced, Burberry is currently on a multi-year journey to transform and reposition Burberry. As it sets out at the start, FY19 and FY20 are foundational years where it will re-energise the brand, rationalise and invest in distribution and manage through the creative transition, after which it will accelerate and grow. In FY19, it achieved first year financial, strategic and operational objectives. (RR)

Fibre2Fashion News Desk – India