Burberry Group Plc · LSE:BRBY
Burberry — FY2024 Earnings Presentation
23 slides from Burberry's earnings presentation, May 15, 2024
Slide 1: FY24 Preliminary Results
FY24 PRELIMINARY RESULTS 15 MAY 2024 Agenda Opening Remarks Financial Results Business Update Q&A 2
Slide 2: FY24 Summary of Performance
Agenda Opening Remarks Financial Results Business Update Q&A 3 FY24 | SUMMARY OF PERFORMANCE • Total revenue flat at CER and -4% reported • FY24 retail comparable sales -1% at CER • EMEIA +4%, APAC +3%, Americas -12% • Gross margin 67.7% reported; -170bps CER, -280bps reported • Adjusted operating p
Slide 3: Total Revenue Growth and Regional Retail Comparable Sales
FY24 | TOTAL REVENUE GROWTH VS LY -4% FLAT Retail growth +1% +2% £3,094m +23% £3,093m -1% -5% £2,968m -4% FY23 Retail comp Retail space Wholesale Licensing Revenue FY24 FX Revenue FY24 CER Reported 5 FY24 | REGIONAL RETAIL COMPARABLE SALES GROWTH GROUP FY -1% Q1 +18% Q2 +1% ASIA PACIFIC Q3 -4% AMERI
Slide 4: Product Category Performance and Adjusted Operating Profit Margin
FY24 | PRODUCT CATEGORY PERFORMANCE FY24 RETAIL REVENUE BY CATEGORY % MIX, % YOY CHANGE ACCESSORIES WOMEN’S Flat +4% • Outerwear outperformed • Scarves grew by double- 31% digit percentage 35% • Leather goods in line with group average • Ready-to-wear softened 5% • Shoes underperformed 29% CHILDREN’
Slide 5: Summary Income Statement and Free Cash Flow
FY24 | SUMMARY INCOME STATEMENT Period ended FY24 FY23 Reported change CER change £m £m % % Revenue 2,968 3,094 (4) flat Gross profit1 2,009 2,182 (8) (3) Gross margin1 67.7% 70.5% (280bps) (170bps) Adjusted operating profit 418 634 (34) (25) Adjusted operating profit margin 14.1% 20.5% (640bps) (50
Slide 6: Cash Position and FY25 Outlook
FY24 | CASH POSITION £63m £271m (£208m) £961m (£233m) Sustainability Bond £298m (£19m) (£402m) £362m Cash (£8m) ex borrowings £663m £299m £63m Apr-23 FCF Capex Dividends Acquisition Buybacks1 FX/Other Apr-24 Pre Capex Net debt/ Net debt/ Adjusted EBITDA CAPITAL ALLOCATION FRAMEWORK APPLICATION Adjus
Slide 7: Strategy: Realising Our Potential as the Modern British Luxury Brand
Agenda Opening Remarks Financial Results Business Update Q&A 13 STRATEGY: REALISING OUR POTENTIAL AS THE MODERN BRITISH LUXURY BRAND BRING ALL PRODUCT HARNESS THE POWER STRENGTHEN CATEGORIES TO FULL OF OUR BRAND DISTRIBUTION POTENTIAL OPERATIONS OPERATIONAL EXCELLENCE PEOPLE & TALENT VALUES & SUSTAI
Slide 8: Brand & Communications: FY24 Progress and FY25 Priorities
FY24 PROGRESS FY25 PRIORITIES Brand Product Distribution Refine brand expression and Refocused storytelling Strengthened increase product focus in and improved brand Elevated aesthetic and storytelling distribution network perception quality of seasonal offer More than 50% of Build out full product
Slide 9: Leveraging Our Britishness and Heritage
LEVERAGING OUR BRITISHNESS AND HERITAGE 17 AMPLIFYING OUR MESSAGING THROUGH HIGH VISIBILITY ACTIVATIONS 18
Slide 10: Improving Brand Clarity, Brand Perception, and Top Clients
IMPROVING BRAND CLARITY, BRAND PERCEPTION, AND TOP CLIENTS BRAND CLARITY1 BRAND PERCEPTION1 TOP CLIENTS Strongly improve or improved TOP CLIENT 70%+ perception of Burberry after seeing SPEND, YOY DD%+ latest campaigns +DD +DD BRAND NET TOP CLARITY PROMOTER CLIENTS SCORE, SCORE2, % NUMBER, FY24 ‘000
Slide 11: Product
Product 21 EVOLVING AESTHETIC IN LINE WITH NEW CREATIVE VISION: SEASONAL COLLECTIONS 22
Slide 12: Burberry Classics Outerwear
EVOLVING AESTHETIC IN LINE WITH NEW CREATIVE VISION: BURBERRY CLASSICS 23 OUTERWEAR | LEVERAGING OUR ICONIC PRODUCT PRODUCT EVOLUTION FY25 Build on category strengths • Enhance offer in Down and Quilts • Build out Burberry Classics Outerwear • Ensure consistent use of branding • Strengthen visibilit
Slide 13: Ready-to-Wear and Leather Goods
READY-TO-WEAR | ELEVATING OUR OFFER AND EXPANDING OUR CORE PRODUCT EVOLUTION FY25 Develop full product offer • Ensure balance between seasonal and core collections • Build out everyday luxury assortment • Ensure consistent use of branding MORE FEMININE BALANCED NEW CORE JERSEY VISION ASSORTMENT OFFE
Slide 14: Shoes and Softs
SHOES | ESTABLISHING A NEW, BROADER OFFER PRODUCT EVOLUTION FY25 Continue to develop offer • Balance distinctive new fashion aesthetic with everyday luxury • Refresh core offer across functionalities • Increase visibility in Boots, emphasising link of outdoors to Burberry DNA NEW SNEAKER STRONG OUTD
Slide 15: Distribution: Retail Stores
Distribution 29 RETAIL STORES | LEVERAGING OUR STORE NETWORK STORE REFURBISHMENT PROGRAMME ON TRACK FY25 NEW AND REFURBISHED FP STORES, % ~100% Enhance retail store experience and focus on conversion • Continue to deliver store refurbishment >50% programme • Strengthen visual merchandising in store
Slide 16: E-commerce and Wholesale
E-COMMERCE | ELEVATING THE CUSTOMER EXPERIENCE ONLINE FY24 HIGHLIGHTS FY25 Maximise commercial opportunity and develop omnichannel capabilities • Optimise digital organic traffic growth by refocusing investment towards brand Pending image marketing • Upweight commercial content and styling on B.com
Slide 17: Operational Excellence
Operations 33 OPERATIONAL EXCELLENCE | IMPROVING EFFICIENCY OF OUR SUPPLY CHAIN FY24 HIGHLIGHTS FY25 Improve operational delivery • Unlock speed and elevate customer experience with focus on strategic categories • Drive cost efficiencies • Deliver process and technology improvements DELIVERY OF PROD
Slide 18: Sustainability: On Track with Delivery of Our Commitments
SUSTAINABILITY | ON TRACK WITH DELIVERY OF OUR COMMITMENTS FY24 FY25 TARGET RESULTS 100% of key raw materials in our products RESPONSIBLE SOURCING to be certified or responsibly sourced by FY 55% 2029/30 Maintain pace of delivery CIRCULAR BUSINESS Continue to evolve our aftercare offer and 40,000+ t
Slide 19: Appendix
Agenda Opening Remarks Financial Results Business Update Q&A 37 Appendix
Slide 20: Disclaimer
DISCLAIMER The financial information contained in this presentation is unaudited. Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to d
Slide 21: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES APM Description and purpose GAAP measure reconciled to Adjusted Profit Adjusted profit measures are presented to provide additional Reported Profit: consideration of the underlying performance of the Group’s A reconciliation of reported profit before tax to adjusted
Slide 22: FY25 Financial Outlook and Foreign Exchange Rates
FY25 | FINANCIAL OUTLOOK Retail space Space is expected to be broadly stable in FY25. REVENUE Wholesale Wholesale revenue is expected to decline by around 25% in H1 FY25. TAX Tax rate We expect the adjusted effective tax rate to be around 27%-28%. The impact of year-on-year exchange rate movements i
Slide 23: IR Contacts
IR CONTACTS JULIAN EASTHOPE REPORTING CALENDAR VP, Investor Relations Q1 trading update 19 July 2024 julian.easthope@burberry.com LAUREN WU LENG Director, Investor Relations Horseferry House lauren.wuleng@burberry.com Horseferry Road London RHIAN POWELL SW1P 2AW Investor Relations Coordinator Tel: +