Burberry said it saw strong performance in its core outerwear and leather goods categories. It is maintaining FY24 and medium-term targets while being mindful of the macroeconomic and geopolitical environment.

Results summary

  • Revenue: up 10% year on year to £3.1bn ($3.86bn)
  • Operating profit: up from £543m to £657m
  • Pre-tax profit: up 24% to £634m

Jonathan Akeroyd, CEO, said: “I am very pleased with what we have achieved this year. We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in Mainland China. Having appointed Daniel Lee as our new chief creative officer, we have refocused our brand aesthetic and brought his new creative vision to life with a campaign and runway show that have been very well received. At the same time, we have reorganised our supply chain, merchandising and digital teams under new leaders to drive our strategy forward. While the external environment remains uncertain, I am confident we can achieve our FY24 and medium-term targets as we focus on executing our plan to realise Burberry’s potential as the modern British luxury brand.”

Commenting on the results, Charlie Huggins, manager of the quality shares portfolio at Wealth Club, commented: “Burberry’s sales growth accelerated in the fourth quarter, as pandemic restrictions in China eased, leading to a solid set of full year results.

“Looking to the medium to longer term, Burberry’s success will hinge on the success of new chief executive, Jonathan Akeroyd’s strategy to turn around the struggling luxury fashion house. This will take some time to judge, but the early signs are encouraging, with a good response to Burberry’s new brand designs and margins finally moving in the right direction.

“The group’s performance has been disappointing for many years. Growth and margins have significantly lagged that of European rivals, and operational execution has often left a lot to be desired. Given this track record, it is far too early for the new CEO to declare victory and much work still remains to be done. Sales in the Americas for example declined by 7% in the fourth quarter, a much weaker performance than Burberry’s key European rivals.

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“It’s not going to be a quick or easy fix. Elevating a luxury brand like Burberry and creating new products that resonate with consumers takes time, and there are no silver bullets. But at least sales and margins are moving in the right direction, providing early encouragement.”

At the end of March, in a move aimed at strengthening its supply chain, Burberry acquired Italian outerwear manufacturer, Pattern SpA, in an EUR21m deal.