Burberry Group Plc · LSE:BRBY
Burberry — FY2025 Earnings Presentation
26 slides from Burberry's earnings presentation, May 14, 2025
Slide 1: Preliminary Results, 14th May 2025
PRELIMINARY RESULTS 14th May 2025 Private and Confidential 1 Opening Remarks 2 Financial Results 3 Business Update 4 Q&A 2
Slide 2: Opening Remarks
Private and Confidential “While we are still early in our transformation, I am more optimistic than ever that Burberry's best days are ahead.” 3 Private and Confidential 1 Opening Remarks 2 Financial Results 3 Business Update 4 Q&A 4
Slide 3: Summary of FY25 Financial Performance
SUMMARY OF FY25 FINANCIAL PERFORMANCE • Comparable retail sales -5% in H2 vs. -20% in H1 • -6% in Q4 and -12% in FY • Total revenue • -15% at CER; -17% reported in FY • Adjusted operating profit £26m; margin 2.0% CER, 1.0% reported • H2 £67m profit, offsetting H1 £41m loss • Adjusted diluted EPS -14
Slide 4: FY25 Total Revenue vs LY and Regional Retail Comparable Sales
FY25 | TOTAL REVENUE VS LY -17% -15% £2,968m (11%) +9% £2,527m £2,461m (35%) (2%) Retail comp FY (12%) H1 (20%) H2 (5%) Revenue Retail Wholesale Licensing Revenue FX Revenue FY24 FY25 CER FY25 Reported Note: Chart not to scale 7 FY25 | REGIONAL RETAIL COMPARABLE SALES DIVERSIFIED GLOBAL NETWORK GROU
Slide 5: FY25 Summary Income Statement and Free Cash Flow
FY25 | SUMMARY INCOME STATEMENT Reported change (%) CER change (%) £m FY25 FY24 Revenue 2,461 2,968 (17) (15) Gross profit 1,538 2,009 (23) (21) Gross margin 62.5% 67.7% (520bps) (470bps) Adjusted operating (loss)/profit1 26 418 (94) (88) Adjusted operating (loss)/profit margin1 1.0% 14.1% (1300bps)
Slide 6: Investments and Cost Savings Programme
INVESTMENTS | STRATEGIC CHOICES TO DRIVE BURBERRY FORWARD AREAS OF FOCUS MARKETING • Strategic investments in consumer-facing initiatives to reignite desire • Disciplined focus on maximising return on spend RETAIL NETWORK • Rolling out scarf bars and trench destinations to improve productivity • Sel
Slide 7: FY26 Outlook
FY26 OUTLOOK We are still in the early stages of our turnaround. The current macroeconomic environment has become more uncertain in light of geopolitical developments. Our focus in the year ahead will be to build on the early progress we have made in reigniting brand desire, as a key requisite to gr
Slide 8: Strengths: All Attributes of Successful Luxury Brands
Private and Confidential “Where we have seen strength in the last six months reaffirms my belief that we have the most opportunity where we have the most authenticity” STRENGTHS | BURBERRY HAS ALL ATTRIBUTES OF MOST SUCCESSFUL LUXURY BRANDS ORIGINAL PURPOSE SAVOIR FAIRE BRAND CODES To protect people
Slide 9: Burberry Forward: Our Strategy
BURBERRY FORWARD OUR STRATEGY TO DELIVER SUSTAINABLE VALUE CREATION 1 TIMELESS BRITISH LUXURY Juxtaposition of heritage and innovation PLACE C U S T O ME R AT THE CENTRE OF 2 LEAD WITH OUTERWEAR Earn authority in other categories; fewer bigger ideas EVERYTHING WE DO 3 A L I G N D I S TR I B U T I O
Slide 10: Burberry Forward: Timeless British Luxury
BURBERRY FORWARD OUR STRATEGY TO DELIVER SUSTAINABLE VALUE CREATION 1 TIMELESS BRITISH LUXURY Juxtaposition of heritage and innovation PLACE C U S T O ME R AT THE CENTRE OF 2 LEAD WITH OUTERWEAR Earn authority in other categories; fewer bigger ideas EVERYTHING WE DO 3 A L I G N D I S TR I B U T I O
Slide 11: W25 Show Anchored Timeless British Luxury
BRAND | W25 SHOW ANCHORED TIMELESS BRITISH LUXURY AT HEART OF BRAND EXPRESSION FIRST SHOW IN ‘BURBERRY FORWARD’ ERA RESULTED IN SIGNIFICANT SHIFT IN CONSUMER ENGAGEMENT “It was Britishness to the Nth degree” “Burberry is all about outerwear, the check Vogue Australia “Burberry brings back magic” and
Slide 12: Collaborations with Cultural Relevance
BRAND | TIMELESS BRITISH LUXURY: COLLABORATIONS WITH CULTURAL RELEVANCE HIGHGROVE ACTIVATION AT REGENT ST FLAGSHIP 23 24
Slide 13: Juxtaposition of Heritage and Innovation Across Touchpoints
BRAND | JUXTAPOSITION OF HERITAGE AND INNOVATION ACROSS ALL CONSUMER TOUCHPOINTS 360° ACTIVATIONS ON HERO CATEGORIES CULTURALLY RELEVANT MOMENTS It’s Always Burberry Weather: London in Love Lunar New Year High Summer Mother’s Day 25 BRAND | JUXTAPOSITION OF HERITAGE AND INNOVATION ACROSS ALL CONSUME
Slide 14: Burberry Forward: Lead with Outerwear
BURBERRY FORWARD OUR STRATEGY TO DELIVER SUSTAINABLE VALUE CREATION 1 TIMELESS BRITISH LUXURY Juxtaposition of heritage and innovation PLACE C U S T O ME R AT THE CENTRE OF 2 LEAD WITH OUTERWEAR Earn authority in other categories; fewer bigger ideas EVERYTHING WE DO 3 A L I G N D I S TR I B U T I O
Slide 15: Strong Customer Response to Check Trims; Autumn 25
PRODUCT | STRONG CUSTOMER RESPONSE TO CHECK TRIMS SUBTLE BRANDING WITH BROAD UNIVERSAL APPEAL 29 PRODUCT | AUTUMN 25 CURRENTLY DELIVERING INTO STORES REBUILDING OUR OUTERWEAR CORE INTRODUCING NEXT GENERATION BAGS 30
Slide 16: Winter 25 and Aligning Pricing with Category Authority
PRODUCT | WINTER 25 REESTABLISHING THE LINK BETWEEN RUNWAY & COMMERCIAL PRODUCT ENSURING A STRONG COMMERCIAL OFFER 31 PRODUCT | ALIGNING PRICING WITH CATEGORY AUTHORITY IN A LUXURY CONTEXT OUTERWEAR READY-TO-WEAR BAGS SHOES Best (~20% mix) Best (~5-15% mix) Better (~40% mix) Better (~40-50% mix) Goo
Slide 17: Reigniting Desire with a Broad Range of Luxury Customers
PRODUCT | REIGNITING DESIRE WITH A BROAD RANGE OF LUXURY CUSTOMERS Priority segments TARGET SEGMENTS OPINIONATED INVESTOR CONSERVATIVE HEDONIST ASPIRING Fashion leader who Mature, high spending, Reserved customer who High spending extrovert Occasional luxury shopper WHO ARE combines timeless with br
Slide 18: Align Distribution with Product & Customer Strategy
DISTRIBUTION | ALIGN DISTRIBUTION WITH PRODUCT & CUSTOMER STRATEGY PROMINENCE, PRODUCTIVITY AND PROFITABILITY WHAT WE SAID … WHAT WE'VE DONE … WHAT’S NEXT … REALIGN SPACE AND DENSITY • Increased density with additional fixtures • Rolling out Scarf bars to 200 stores IN FAVOUR OF CATEGORY • Reintrodu
Slide 19: Heroing Scarves and Enhancing E-commerce Experience
DISTRIBUTION | HEROING SCARVES ROLLOUT STARTING WITH KEY LOCATIONS FROM… TO… 37 DISTRIBUTION | ENHANCING E-COMMERCE EXPERIENCE STORYTELLING PRODUCT STYLING DIGITAL INNOVATION SnapChat Moji Weather App 38
Slide 20: Reignite a High-Performance Culture
BURBERRY FORWARD OUR STRATEGY TO DELIVER SUSTAINABLE VALUE CREATION 1 TIMELESS BRITISH LUXURY Juxtaposition of heritage and innovation PLACE C U S T O ME R AT THE CENTRE OF 2 LEAD WITH OUTERWEAR Earn authority in other categories; fewer bigger ideas EVERYTHING WE DO 3 A L I G N D I S TR I B U T I O
Slide 21: Rekindling Creative and Commercial Alchemy
Private and Confidential PEOPLE | REKINDLING OUR CREATIVE AND COMMERCIAL ALCHEMY Design CREATIVE AND COMMERCIAL ALCHEMY Merchandising Marketing PEOPLE | ORGANISING FOR GROWTH OFFICES RETAIL SUPPLY CHAIN STREAMLINING OPERATING MODEL, EVOLVING WAYS OF WORKING AND ALIGNING COST BASE 42
Slide 22: Moving at Pace to Execute Plan
SUMMARY | MOVING AT PACE TO EXECUTE PLAN AND DELIVER SUSTAINABLE VALUE CREATION PLACE C U S T O M E R AT THE CENTRE OF EVERYTHING WE DO BURBERRY FORWARD Near-term Mid-term 1 TIMELESS BRITISH LUXURY STABILISE THE BUSINESS SUSTAINABLE PERFORMANCE 2 LEAD WITH OUTERWEAR • Reignite Desire • Outperform Re
Slide 23: Appendix: Disclaimer
APPENDIX 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 res
Slide 24: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES Alternative performance measures (APMs) are non-GAAP measures. The Board uses the following APMs to describe the Group’s financial performance and for internal budgeting, performance monitoring, management remuneration target setting and external reporting purposes.
Slide 25: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES APM Description and purpose GAAP measure reconciled to Net Debt Net debt is defined as the lease liabilities Cash net of overdrafts: recognised on the balance sheet plus borrowings less cash net of overdrafts. 52 weeks ended 52 weeks ended Period ended 29 March 2025
Slide 26: Investor Relations Contacts and Foreign Exchange Rates
FOREIGN EXCHANGE RATES SPOT RATES ACTUAL EXCHANGE RATES FY26 AVERAGE EXCHANGE RATES £1= 2 May 2025 FY25 FY24 Euro 1.17 1.19 1.16 US Dollar 1.33 1.28 1.26 Chinese Renminbi 9.65 9.21 9.01 Hong Kong Dollar 10.28 9.98 9.84 South Korean Won 1,861 1,781 1,657 Japanese Yen 192 194 182 INVESTOR RELATIONS CO